California bill requiring large companies to disclose pay info passes Senate

Posted at 4:42 PM, Sep 07, 2017
and last updated 2017-09-07 19:53:32-04

(KGTV) - A piece of state legislation that would require large companies to disclose information on employee pay has taken another step toward becoming California law.

AB 1209, known as the Gender Pay Gap Transparency Act, passed the state Senate by a vote of 22-13 Thursday. The bill, introduced by Assemblywoman Lorena Gonzalez Fletcher, would require companies with 500 or more employees in California "to collect specified information on gender wage differentials."

That salary data would be reported to the Secretary of State.

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That data would then be posted online for consumers to have access to viewing. Assemblywoman Fletcher said, "proven beyond dispute that women in the U.S. are paid, on average, less than men for doing the same jobs."

"Women in this country aren’t paid fairly – it’s gender discrimination pure and simple," Fletcher said. "Sunlight is a great way to help expose and address this problem. This bill will give the public very precise data about which big companies are paying women the salaries they deserve, and which aren’t."

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The bill will now head to the Assembly for a final vote next week.

Last week, the Trump administration announced it would end an Obama-era rule that required companies with more than 100 employees to collect salary data based on gender, race, and ethnicity.

"Ultimately, while I believe the intention was good and agree that pay transparency is important, the proposed policy would not yield the intended results," President Trump said in a statement about the stay. "We look forward to continuing to work with EEOC, OMB, Congress and all relevant stakeholders on robust policies aimed at eliminating the gender wage gap."

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Fletcher said her bill includes many "similar requirements" as the Obama Administration data collection.