More companies expected to move to equal pay, as a new California law soon goes into effect.
Nationwide, women continue to make less money even when they’re doing the same jobs as men. But now a California law is changing the way companies dole out salaries, with a Silicon Valley tech giant taking the lead.
The online marketing database firm Salesforce this week announced that it has adjusted salaries this year by $3 million to insure gender pay equity, according to the San Francisco Chronicle. Company CEO Marc Benioff says that Salesforce reviewed salaries of all of its women employees, and adjusted them based on salaries that men make at the company.
Salesforce has more than 17,000 employees, and 77 percent of its workforce are men. Some observers say that this is the first time that a company has made such a change in salaries and made the news public.
Last month, California adopted a Fair Pay Act that goes beyond federal pay equity rules, by requiring companies to pay women the same as men for work that is “substantially similar,” regardless of their titles or locations. The law also allows employees to ask about salaries openly, and protects them from employer retaliation when they raise pay equity concerns.
In promoting the bill, proponents noted that pay equity would account for $33.6 billion that women employees are currently losing due to unequal salary structures.
In making the move at Salesforce, Benioff explained in a recent speech that such changes are part of the company’s commitment to long-term goals and social values over short-term profits. In addition to pay equity, Salesforce is also promoting more women, with 32 percent of promotions going to women staff through July 2015, compared to 24 percent through the same period last year.
The company also intends to have women make up at least one-third of its executive management at meetings and events.