Walter Stella was quoted in Law360 discussing the developments of pay transparency in California for 2023. Walter said that for many years employers have treated employee pay data as highly confidential, but S.B. 1162 forces them to shift their mindset in order to promote pay equity. "I think companies are going to have to learn how to operate in a much, much different world with the public policy that will help close that pay disparity gap," he said.
He noted that many employers aren't aware that California workers — who are now allowed to take up to 12 weeks of unpaid, job-protected leave to care for ill parents-in-law under the expanded CFRA — can argue that they should receive the time off in addition to leave allowed under the federal Family and Medical Leave Act, a situation that may leave employers understaffed.
"We've seen this issue come up with clients, and it's not something that's been publicized, but it's very real for some companies with 50 employees or more. It could potentially be a hardship for employers," he said. "It is a hidden potential pitfall for employers who may not be looking at that."
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