SAN FRANCISCO, Calif. (KRON) — A new California bill aims to eliminate pay inequality through wage transparency.

Senate Bill 1162 would require companies with more than 100 employees to publicly report how much they pay people, broken down by gender and ethnicity.

This new bill hopes to eliminate gender and race pay gaps by forcing companies to publicly report how much it pays employees and contractors, broken down by gender, ethnicity, and job category.

The bill’s author, Senator Monique Limon who represents District 19 in Southern California, says this bill builds on previous legislation.

Nonprofit Equal Rights Advocates is a sponsor of the bill.

Equal Rights Advocates Policy Director Jessica Stender says women of color make up the largest group of people affected by pay inequality.

In addition to ensuring workers have wage transparency for direct employees, she says this bill also covers contracted employees.

The bill will have to go through several different legislative review processes before making it to the governor’s desk by Aug. 31.