Salary range disclosures backfire after government push

Salary range disclosures backfire after government push

Some job postings that have cropped up amid California’s push for pay transparency feature fairly wide compensation ranges..

The pay transparency law, formerly known as SB 1162, went into effect with the start of the new year. It mandates that employers with 15 or more employees “include the salary scale for a position in any job posting.” When such an employer works with a third party to “advertise, advertise, publish, or publicize a job offer,” it must also disclose the salary range in the listings, according to the text of the legislation.

The California Department of Industrial Relations has said the regulation covers job postings “if the position can ever be filled in California, either in person or remotely.” The salary scale must “mean the wage or hourly wage range the employer reasonably expects to pay” someone for the position and does not have to include bonuses, tips, or other benefits, according to the Department.

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tesla

Tesla vehicle drives past Tesla’s main vehicle factory after CEO Elon Musk announced he was defying local officials’ coronavirus disease (COVID-19) restrictions by reopening the plant in Fremont, California, on May 11, 2020. (Reuters/Stephen Lam/Reuters Photos)

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in a Tesla Job List For a software engineer in Fremont, the electric vehicle maker listed the “expected compensation” range between $104,000 and $384,000 in annual salary, cash and stock awards, and benefits. another for a business analyst job for Tesla’s Semi segment featured a compensation range of $68,000-$234,000.

“Pay offered may vary based on multiple individualized factors, including market location, job-related knowledge, skills, and experience,” the postings said. “The total compensation package for this position may also include other elements depending on the position offered.”

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Netflix

The Netflix logo is displayed during ‘Paris Games Week’ on November 2, 2017 in Paris, France. (Chesnot/Getty Images)

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On Netflix, a product manager for the plans position in Los Gatos has a “general market range” of typically $80,000-$700,000, according to an ad. One software engineer job at the streaming giant had a range of $90,000-$900,000, while a post production assistant job in Los Angeles it came in with a market range of $55,000-$305,000.

The listings said the market ranks were “based on total compensation (vs. just base salary), which is in line with our compensation philosophy.”

Netflix “carefully considers[s] a wide range of compensation factors to determine your personal top of the market,” the job postings said, based on market factors and considering things like specific job, skills, and experience. Such considerations “may make your compensation will vary and will also depend on your location,” according to the listings.

Bloomberg previously reported in some broad pay ranges across the two companies, including those highlighted by compensation analytics website Comprehensive.io.

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Tik Tok

man’s hand in jeans holding a phone with an isolated screen

For a full software engineering position in ByteDance’s TikTok unit on the company’s product creation and consumption team in San Francisco, the base salary range was listed as $126,000-$304,704.

“At TikTok, base salary is just one part of the total compensation package we provide to recognize employees for their work,” a TikTok spokesperson told FOX Business. “We may consider candidates with different experiences, skill sets or qualifications. This can influence the base salary range, which illustrates the maximum possible salary spread a candidate could receive depending on such different factors.”

FOX Business has contacted Tesla and Netflix for comment.

Among tech companies tracked by Comprehensive.io, the compliance rate for California’s new pay transparency law was around 50.2% as of Friday afternoon, according to the site.

NEW YORK CITY JOB LISTINGS WILL REQUIRE DISCLOSURE OF PAY RANGE UNDER NEW LAW

other states

Close-up of two businessmen shaking hands in an office raining money concept (iStock / iStock)

Similar legislation has been passed in New York City and New York State, and the state regulation signed by Gov. Kathy Hochul (DN.Y.) is expected to take effect later this year.

The city’s bill went into effect in November. Some salary ranges that appeared shortly after the Big Apple law went into effect also had large differences between the maximum and the minimum, according to Bloomberg.

Washington state and Colorado have also made their own laws requiring job postings to disclose what rank employers hold for roles.

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