06 September 2022

Good News

A while back, in order to ensure that companies do not pay less to women and minorities, Colorado passed a law requiring that all job openings include a salary range

In response, companies started posting advertisements specifically excluding Colorado, at least for work from home gigs.

I do not think that they will be able to do the same now if Governor Gavin Newsome sees fit not to veto SB1162, which has passed both houses.

California has about 11¾% of the of the US population, and probably twice that for jobs which can be done remotely, so they will have to comply.

Not only will this make it less likely that women and minorities will be underpaid, but it will go a long way toward correcting the information asymmetry between capital and labor on wages:

California lawmakers passed a bill that aims to promote pay equity by requiring employers to post salary ranges with job listings in the state.

The bill, SB 1162, "would require an employer with 15 or more employees to include the pay scale for a position in any job posting." It also would require companies to include median and mean hourly rates for each combination of race, ethnicity, and sex within each job category in their pay data reports to the state.

The legislation will become law in California if Governor Gavin Newsom signs the bill before September 30, 2022. Newsom has not expressed an opinion on the bill.

SB 1162 is similar to a Colorado law passed to deal with salary disparities. Colorado approved the Equal Pay for Equal Work Act in 2019 and created rules to implement the law in 2021. However, employers like DigitalOcean have ducked Colorado's rules by not offering certain positions to state residents.

Such defiance may become more difficult to sustain if California adopts SB 1162.

The California Chamber of Commerce objects strenuously to this, but that only means that it is a good bill and good for society.

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