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Starting Compensation and Pay Equity in California

Employers who plan to increase their hiring initiatives as part of the tentative reopening date of June 15 should consider guidance issued by the California Commission on the Status of Women (“Commission”), regarding starting compensation. The California labor code prohibits employers from seeking salary history from applicants, relying on salary history information to determine whether to offer employment or what salary to offer and relying on prior salary to justify the disparity in compensation. The guidance includes suggested practices for setting salaries, including determining the company’s compensation philosophy and evaluating internal equity.

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