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Topic: California passes law requiring companies to reveal pay by race, gender (Read 77 times)

legendary
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The downsides of this doesn't outweight the upside of it. If there are other races that gets paid less, or women do get paid less than men, for the same exact job, then maybe we should have this law to make sure that employers do not abuse this system.

I get that it "may" cost a bit more, but the reality is that if all the wages are open in public, which should have been the case to begin with, then it would be like a few lines of code for a software and we are done. Hence, I do not think that it would be that difficult to handle this, it would be quite simple. This is why I am in full support of this, to make sure that we get equality all around.
legendary
Activity: 1456
Merit: 1108
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I think this carries the potential to become a dual edged sword. While the information might be used to fuel equality. It would also make it easier for employers and businesses to discriminate based upon those data points.
Though the intention may be right, but I think just as you said, the data also has the capacity to be abused and used negatively against the colored skinned individuals. Reforms can be made IMO without the necessary need to differentiate individuals from different race so that the thought of racial superiority that leads to racism, something that we all have fought so hard to abolish will not begin to be invested ones again in the mind of uncultured individuals.
legendary
Activity: 2072
Merit: 4265
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I never cease to be amazed at the different kinds of decision-making in America. The digital camp is becoming more and more selective. What else can be divided? Women, men, different races, professions, and so on. They want to arrange everyone according to their calculations and force them to obey. I am very sad to hear such news. Once, as a child, I dreamed of living in a free country called America. But every year, my desires turn into something that I desperately deny.
copper member
Activity: 2856
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This is not surprising comming from the most progressive estate in US. However it is not really new in the world, as, for  example, the UK and others have been analysing and making public the information about pay disparity across many factors since a long time ago. Still, the measures that can be taken are usually limited as the market sets salaries.

Yes I don't know if it's had much of an effect in the UK. Men are still paid poorly in women dominated fields and vice versa even at market rates (although I'm not too sure why).

The UK also came under pressure from the first iteration of this they put out because it compared overall pay and not hourly pay (I think) so people said it was unfair to companies if women wanted to work part time (and those women if the company wouldn't let them to get their figures up - which could still become a thing on hourly rates imo).



I'm kinda surprised california doesn't collect this information already too. I assume they probably already have a lot of it they could use or get employees to input their information independently (as an annual survey).
legendary
Activity: 2366
Merit: 1624
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This is not surprising comming from the most progressive estate in US. However it is not really new in the world, as, for  example, the UK and others have been analysing and making public the information about pay disparity across many factors since a long time ago. Still, the measures that can be taken are usually limited as the market sets salaries.
STT
legendary
Activity: 4088
Merit: 1452
More red tape, I only hope they allow small companies to escape the burden of yet more large government compliance.     A malicious company is already open to current laws for discrimination and the ongoing loss even without laws is a company that reduces their employment intake falsely to exclude some is making their own work and recruitment harder to process; with the results of negative discrimination very likely reducing the quality of their workers.
  An uncompetitive company should already be suffering vs a more open able competitor even without a law to say dont be idiot, generally being an idiot does not pay out.
legendary
Activity: 2562
Merit: 1441
Quote
Employers in California may soon have to post salaries for job listings and publicly reveal pay scales by race, ethnicity and gender.

The state Legislature passed a law Tuesday requiring all employers in the state to post salary ranges for open positions. It also would require companies with more than 100 employees to report pay scales by gender, race and ethnicity, data that California would then make public.

California Gov. Gavin Newsom has until Sept. 30 to sign or veto the bill.

“Disclosing salary ranges during hiring negotiations has been proven to narrow the wage gap,” said state Sen. Monique Limón, a Santa Barbara Democrat, in a statement to USA TODAY. “I am hopeful that the governor will sign SB 1162 and take meaningful action to create an equitable economy that supports women, families, and people of color.”

The California Chamber of Commerce opposed the bill and put it on its “Job Killers” list, saying it would encourage more lawsuits against businesses and make hiring “more burdensome.”

California joins other cities and states in enacting laws to force employers to hand over more compensation information. Employers oppose the growing movement, saying they are proponents of pay transparency and equity but don’t agree with how states and cities are going about it.

“States and localities are moving to mitigate pay disparity, and it’s obviously gaining traction,” Michelle Holder, a labor economist whose research focuses on the Black community and women of color, told USA TODAY in February. “I am hopeful this momentum continues at the local and state levels, and perhaps works its way up to the federal level at some point.”

What’s behind the national push for pay transparency? Pay equity.

A California study found that women made $46 billion less than men in similar positions in 2020. People of color were paid $61 billion less than white workers.

Women and people of color have historically been offered significantly lower salaries, and corporations profit from underpaying them, said Holder, president and CEO of the Washington Center for Equitable Growth and associate professor of economics at the John Jay College of Criminal Justice in New York City.

At the current pace, women won’t close the pay gap with men until 2059, according to the Center for American Progress. And it could take a century for Black and Hispanic women.

Disparate pay has helped widen the wealth gap. The median Black household owns nearly 90% less wealth than the median white household, according to Goldman Sachs research on Black women. Lower levels of earnings for Black households drive much of the gap.

Federal legislation that would have made it harder for employers to pay women less than their male co-workers was blocked last year by Senate Republicans who said the Paycheck Fairness Act would primarily benefit trial lawyers, not women.

https://money.yahoo.com/california-passes-law-requiring-companies-034237391.html


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Not certain what to think about this. Some may insist on defining wages by race and gender to produce better wage and wealth inequality. But the dollar cost of such data could cost businesses and employers thousands perhaps even millions of dollars annually. This type of accounting and record keeping carries a price tag which could be passed on to workers, resulting in salary and wage cuts.

The best solution here could be a form of open source and free software that could cooperate with existing tax software to automatically extrapolate and format the required gender and race data at low cost.

I think this carries the potential to become a dual edged sword. While the information might be used to fuel equality. It would also make it easier for employers and businesses to discriminate based upon those data points.

There were recent proposals in the united states public school system to separate (segregate) black and white children. Some believed this would make it easier for minority children to receive better educations. Historically however the outcome could trend in an opposite direction.

There could be a lot to consider and think about with these types of proposals. I hope people recognize they often get what they ask for in life. Which makes it important to be accurate and consistent on fact checking and making an effort to support the right things.
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