Shulou(Shulou.com)11/24 Report--

You don't have to be a salary riddle anymore?

Since January 1, the salary Transparency Act (Wage Transparency Law), which has been implemented all over the United States, has finally been officially implemented in California.

The bill requires all companies with more than 15 employees to disclose their salaries in their job listings, from hourly and temporary workers to well-paid technology executives.

As the largest state in the US economy, California has more than 19 million salaried workers and more than 20 per cent of Fortune 500 companies. As tech giants such as Apple, Google and Meta begin to disclose job salaries, supporters of the bill argue that pay transparency will eventually become the norm in the long run.

Comprehensive.io, a new website that aggregates the pay ranges of 700 top technology companies and start-ups, climbs the recruitment websites of these employers every day and updates the data as soon as the pay floor law for 700 technology companies is implemented.

Links: https://www.comprehensive.io/ users can screen for different jobs and companies on the site, but the site currently only offers searches for technology-related jobs in California and New York City.

Here are the annual salary ranges of some executives at the US tech giants:

1. Amazon: director of Engineering, $220000 to $298,000

2. Meta: deputy General Counsel, $190000 to $256,000

3. Apple (Apple): iOS Engineering Manager, $229000 to $378,000

4. Google (Google): deputy General Manager of Engineering, $550,000

5. Microsoft (Microsoft): director of content Design, $259000 to $277,000

6. Cisco (Cisco): director of user experience Research, $314,000

7. Twitter: director of payroll and stocks, $162000 to $226,000

8. Tesla (Tesla): senior software engineer, $83000 to $418,000

It is worth noting that the salary list disclosed by the company does not include any bonuses or equity.

Pay transparency promotes equal pay for equal work according to Payscale, a salary comparison platform, a total of 13 cities and states in the United States now require employers to share salary information, covering about 1/4 of employees.

California's pay Transparency Act aims to narrow gender and racial pay gaps and help minorities and women better compete in the labour market.

Workers can compare their current salary with the job list for the same position to see if their salary is lower than the market price. According to the U.S. Census Bureau, women earn only 83 cents for every dollar men earn.

Monique Lim ó n, a California senator who supports the new law, said: in order for men and women to get the same pay for the same workload and the same experience, we still need to do a lot of things, one of which is to promote the transparency of the pay range.

But the new disclosures required by law may not tell the whole story of pay.

Companies can choose to show a wider range of compensation, and the law does not require companies to disclose bonuses or equity compensation.

When opposing the bill last year, the California Chamber of Commerce said it could also punish workers who seek higher pay because of their better experience or skills; some employers may be cautious about publishing pay to prevent bidding wars for top talent.

A spokesman for Meta said: in order to ensure the fairness of the compensation system and eliminate bias, we will conduct salary fairness analysis on a regular basis. The latest analysis confirms that Meta continues to promote pay equity across genders and races around the world for people engaged in similar work.

But Meta usually pays full-time employees in the form of equity and cash.

The new law, California Senate Bill 1162, which was passed in September last year and came into effect on January 1 this year, mainly contains two key parts.

The first is the compensation transparency section of the job list, which applies to any company with more than 15 employees if the work can be done in California.

The second part requires companies with more than 100 employees to submit a salary data report to California detailing salary information by race, sex and job category. Companies had previously been required to provide a similar report at the federal level, but California is now asking for more details.

Employers must keep detailed records and salary history of each position, which can be accessed by the California Labor Commission. California can enforce the law through fines and can investigate violations. Under the new law, these reports will not be published publicly.

Lim ó n said that the bill helps narrow the pay gap by providing information to the public so that they can better negotiate pay or judge whether their experience and skills are undervalued. It will also help the state to ensure that companies comply with the existing law on equal pay for equal work.

This is important because we can't solve problems we can't see.

Lim ó n also hopes the requirement will help California companies recruit the best talent and compete with other states that do not require employers to disclose salaries.

The pay transparency law may also prompt companies to raise wages when they find that competitors are offering higher salaries, and some companies can even choose to publish salary ranges on lists of unwanted jobs.

Lim ó n believes that ensuring that women and people of color are paid equally will help California's economy.

Legal loopholes the new law does not require employers to disclose total compensation, which means companies can omit information about stock grants and bonuses to provide an incomplete report on some well-paid jobs.

For high-paying jobs in the technology industry, equity compensation in the form of restricted stock units can account for a large proportion of employees' actual wages; in financial and other industries, bonuses also account for a large part of the annual salary.

Zuhayeer Musa, co-founder of Levels.fyi, says that for employees of technology companies, what they want to know is total compensation, as stock compensation may be more than 50 per cent of total actual compensation.

And the shares of large technology companies are so liquid that they can basically be sold on the stock market immediately.

The new law also only requires companies to provide a broad salary range, and the range between the minimum wage and the maximum wage for some jobs may exceed $100000 or more.

While this seems to go against the original intention of the law, companies generally agree that the pay range is reasonable, as base pay can vary widely depending on skills, seniority, experience and location.

Lulu Seikaly, a senior corporate lawyer at Payscale, says the company may be willing to hire experienced candidates for a particular job opening, from entry level to higher level.

She advises clients to publish a list of jobs with specific qualifications to narrow the range of potential compensation.

Some California companies do not list salaries for jobs in other states, but supporters hope that California's new law will lead to more salary disclosure across the country.

After all, a to-do list with a clear starting salary or range may attract more candidates than a to-do list with unclear pay.

Seikaly believes that pay transparency is still very immature and that salary disclosure will eventually become the norm in five to 10 years' time.

Reference:

Https://www.cnbc.com/2023/01/05/heres-how-much-top-tech-jobs-in-california-pay-according-to-job-ads.html

Https://www.businessinsider.com/a-new-website-compiles-tech-salaries-see-your-jobs-worth-2023-1

This article comes from the official account of Wechat: Xin Zhiyuan (ID:AI_era), editor: LRS

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.