The infographic above highlights the results of an analysis of California SB973 pay data that shows an annual gender pay gap in 2020 of $46B and an even higher race/ethnicity annual gender pay gap of $61B. The analysis is based on summarized, anonymized pay data filings that Trusaic, a regulatory compliance company specializing in pay equity analytics, helped prepare on behalf of organizations, extrapolated to the entire workforce in California. SB 973 authorizes the California Department of Fair Employment and Housing (DFEH) to enforce the annual reporting of pay and hours-worked data for employers with more than 100 employees. DFEH examines reported pay data for evidence of both pay discrimination and non-pay employment discrimination.
The analysis identifies pay differences with large, statewide implications. Trusaic's analysis finds annualized pay gap contribution from the professional, scientific and technical services (PSTS) and manufacturing industries contributing over twice as much to the gender pay gap and over 62% to the race/ethnicity pay gap relative to these industries' employee proportions of the California workforce. There are a number of other factors, such as job level, tenure, training, performance, managerial and revenue responsibility, and prior experience that are omitted from the annual pay data report. Organizations should be proactive and conduct a pay equity audit that controls for these additional legitimate drivers of pay differences and provides a more accurate measure of pay equity, according to the company.
On November 17, at 9 a.m. PT, Trusaic will host a webinar, “How to Prepare for Pay Data Reporting,” featuring Mark Dwyer, vice president of data science at Trusaic, and Craig Leen, partner at K&L Gates, LLP, former OFCCP director at the U.S. Department of Labor and professorial lecturer in law at the George Washington University Law School, to discuss the findings and their implications for employers in California and across the country.
