Salary transparency is now more common in San Francisco Bay Area
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Salary transparency in job postings has become much more commonplace, increasing the fastest in Silicon Valley and the San Francisco Bay Area, according to a recent analysis by job platform Indeed.
Driving the news: A new state law went into effect in January requiring employers with 15 or more employees to include salary ranges in job postings.
Why it matters: The increase shows the pay transparency law has had an immediate effect, especially in San Francisco and its surrounding areas.
- Meanwhile, it suggests the power balance is beginning to shift in California, giving job candidates access to information that employers have historically kept obscured.
By the numbers: In February 2022, just 22.4% of job postings in San Francisco, Oakland and Berkeley listed salary ranges. That number had jumped to 63.8% in the SF Bay Area as of last month, Indeed found.
- Salary transparency in Silicon Valley (San Jose, Sunnyvale and Santa Clara) grew from 17% to 62.5% in that time period.
- Nationally, there was pay transparency on 43.7% of job postings last month.
What they're saying: "Pay transparency is key to eliminating wage gaps, and to reaching equal pay for equal work," Kristen Shah, Indeed's career trends expert, wrote in a statement. "It not only empowers job seekers, but it plays an important role in holding employers accountable."
Yes, but: Just 61.1% of tech employers are complying with the law in California, according to an analysis by compensation management startup Comprehensive.io.
- Companies that don't comply could be subject to penalties assessed by the state's labor commissioner's office ranging from $100 to $10,000 per violation.
- Anyone can file a retaliation complaint against an employer not in compliance with the law here.
Zoom out: Similar pay transparency laws exist in Washington state, Colorado, New York and others.
What to watch: How useful pay transparency is to potential candidates and current employees alike.
