On February 17, the California Senate introduced SB 1162, which—if passed—could give California the most aggressive pay transparency laws in the nation. Again. The draft California law enhances two common state law pay transparency strategies: proactive wage range disclosure and pay data reporting.

Proactive Wage Range Disclosure

California was the first state in the nation to pass a mandatory pay transparency statue. It requires California employers to provide external applicants the “pay scale” for a job they are applying to “upon reasonable request.” At the time, this was cutting edge. Since then, state after state have passed their own pay transparency requirements. Even some cities have joined in. Some new pay transparency laws require disclosure to applicants. Others require disclosure to employees. Some require disclosure upon request. Others require disclosure proactively.

Colorado’s pay transparency law is currently the most aggressive. It requires employers include pay and benefits disclosures in job postings—including for remote roles. It also requires written notice to Colorado employees before it decides to hire, change the job title, or change the job duties, authorities, or opportunities of any employee.

In short, California’s draft law largely mirrors Colorado’s approach. Like Colorado, it would require pay scales to be included in each job posting. It is unclear if California intends this law to reach jobs beyond its state boundary like Colorado.

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