As a result of Governor Newsom’s signature on SB 1162, California will soon become the largest state requiring affirmative disclosure of pay scale information, thus contributing to the state’s ongoing effort to increase pay transparency. Effective January 1, 2023, many California employers will be required to include pay scale information in job postings and disclose pay scale information to current employees. The bill also makes significant changes to California’s existing pay data reporting requirements for private employers with 100 or more employees. Consequently, California employers must begin familiarizing themselves about the bill and its new obligations:
California Labor Code section 432.3 defines “pay scale” as the “salary or hourly wage range” an employer “reasonably expects” to pay for a position. Currently, California only requires employers to provide a position’s respective pay scale upon reasonable request by an applicant. But, as of January 1, 2023, employers with 15 or more employees must include the pay scale for a position in any job posting (including posts on third-party sites such as LinkedIn or Indeed). Employers will also be required to provide a position’s pay scale to any current employee in that position, upon request.
SB 1162 also significantly changes existing pay data reporting requirements under California Government Code section 12999,...
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