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The annual gender pay gap in 2020 was $46 billion, while the race/ethnicity gap last year clocked in at $61 billion statewide, according to an analysis of more than 500 companies’ pay data performed by compliance software company Trusaic.
Trusaic’s Vice President of Data Science Mark Dwyer said the company compared white to nonwhite workers and male vs. non male workers. The size of the sample wasn’t large enough to collect data on nonbinary individuals, he said.
Dwyer said the company was able to estimate pay gaps statewide based on their sample size and by extrapolating those numbers out to the entire California workforce based on employee counts by industry done by the state Employment Development Department.
The study found that certain industries led the pack when it came to pay differences.
Professional, scientific and technical services had the largest annual gender pay gap per employee, about $7,800, when adjusted for industry size. That was followed by a 7,000 gap in the same category by the statewide manufacturing industry.
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The most pronounced race/ethnicity pay gap by employee was also in the professional, scientific and technical services industry, with white employees making $10,200 more annually than their nonwhite colleagues.
Manufacturing again followed with a race and ethnicity pay gap per employee of about $7,300.
Companies’ deadline to report pay data to the state Department of Fair Employment and Housing under the new law was in March, but that data is not yet publicly available, according to an email from department spokeswoman Fahizah Alim.
“One of the biggest problems is the lack of pay transparency,” at companies said Nicole Mason, CEO of the nonprofit Institute for Women’s Policy Research. “It’s possible for people applying for the same job or working in the same role in a company to be paid less,” she said, adding that more experience often meant more room for discrepancy in what to pay a candidate.
“Skill doesn’t level the playing field,” she said.
To that point, Trusaic’s data found the least pronounced pay gaps per employee along racial and ethnic lines were in the service and labor industries which have more defined salary floors in some cases, estimated to be about $800 in each.aside">
Dwyer said industries that tended to pay more, like professional and scientific jobs, tended to have higher pay gaps, while those that paid less like laborer categories saw smaller differences.
Despite the yawning gaps in pay, federal data from last year shows that California is one of the few states where women’s pay averages 85% or better annually than that of their male counterparts.
Mason of the IWPR said those numbers have mostly not changed for years and that laws like California’s SB 973, “Will serve as a model for the nation but also serve to accelerate the closing of the gap.”
Research conducted by the nonprofit Society for Human Resource Management also shows that of the businesses that conducted a voluntary review of pay practices, more than 80% adjusted employees’ pay afterwards.
While differences in pay along these lines don’t necessarily point to discrimination, they can act as guidelines in helping the state housing and employment department know where to look to investigate certain industries and potentially issue penalties or lawsuits.
“They can be proactive and see where a California industry has an issue,” said Dwyer of Trusaic. “They don’t have to wait for an employee to discover there’s a discrepancy.”
Source : https://www.sfchronicle.com/california/article/California-women-minorities-are-still-being-paid-16569708.php813