Two Important New Employment Laws

Pay Transparency

Among the new employment laws that go into effect January 1, 2023, two deserve special mention. One, referred to as “Pay Transparency,” applies to your nonprofit if you have 15 or more employees. Starting January 1, you’ll need to include pay range information in any job posting. In addition:

• ALL employers must provide a pay scale to any current employee for their position upon request.
• Employers must also maintain records of a job title and wage rate history for each employee during employment and for three years after separation from the company
• All private employers with 100 or more employees must file pay data reports with the State’s Civil Rights Department, regardless of whether they are required to file a federal EEO-1 with the EEOC. (Note: nonprofits are considered “private employers.)

Retirement

The other change has to do with retirement programs. The CalSavers Retirement Savings Program is a state-run retirement program for employees who work for employers not offering a private-market retirement plan, such as a 401(k) plan. Previously, the law only applied to nonprofits with 5 or more employees. As of January 1, it applies even if you have only one employee.

Learn more

Spokes members can view the 60-minute video overview of these and other new HR-related laws for 2023. Sign into your account, click “access member benefits,” and go to the Video Library. You’ll find the recording in the Past Classes showcase. Not a member yet? Check out the member benefits.