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California's new pay transparency law shines a light on tech industry salaries

California has recently passed a law that requires companies to include pay information in job listings. The law, which goes into effect on January 1st, 2023, aims to increase transparency and reduce pay disparities based on gender and race.

Under the new law, companies must include either a salary range or a specific pay rate for the position in job advertisements. This applies to all jobs, regardless of the industry or location. Companies that fail to comply with the law may be subject to fines and legal action.

The law has already had an impact on the job market in California, particularly in the tech industry. Tech companies, known for their high salaries and generous perks, are now required to disclose pay information for all open positions.

In addition to the new pay transparency law, California has also implemented other measures aimed at reducing pay disparities. For example, the California Equal Pay Act, which went into effect in 2016, requires employers to pay employees of the opposite sex the same wage for substantially similar work.

However, pay disparities persist in California and across the country. A recent study by the National Women's Law Center found that women in the United States, on average, are paid 82 cents for every dollar paid to men. The pay gap is even wider for women of color. For example, Black women in the United States are paid just 63 cents for every dollar paid to white men.

According to data from the job search website Indeed, the average salary for a software engineer in California is $133,000 per year. This is significantly higher than the national average of $105,590 per year, as reported by the Bureau of Labor Statistics.

Other high-paying tech jobs in California include data scientist, with an average salary of $122,000 per year, and product manager, with an average salary of $119,000 per year. These salaries are also significantly higher than the national average for these positions.

The new law has been met with both support and criticism. Proponents argue that the law will help to level the playing field for underrepresented groups and reduce pay disparities based on gender and race. Opponents argue that the law may discourage companies from hiring in California or lead to reduced salaries for some positions.

Regardless of the potential consequences, the new law is a step towards greater transparency in the job market. It remains to be seen how the law will affect pay and hiring practices in California in the long term.


H/T: CNBC

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