The Allen Matkins Employment & Labor Practice provides annual updates to California law on worker rights and employer obligations.
Senate Bill (SB) 642 amends California’s Equal Pay and Pay Transparency laws to clarify that the “pay scale” that employers must disclose to an employment applicant in a job posting means a “good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire." It also amends the Equal Pay Act to generally prohibit paying employees of “another sex” (existing law says “opposite sex”) lower wage rates for substantially similar work, subject to the existing statutory exceptions. SB 642 also defines “wages” and “wages rates” to include all forms of pay, including salary, overtime, bonuses, stock, stock options, profit sharing, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.
SB 642 extends the statute of limitations to no later than three years after the last date the cause of action occurs, and increases potential liability to up to six years of back wages and benefits.
Covered employers should ensure compliance with these amendments for job postings and pay practices.
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