California Governor Gavin Newsom recently signed a number of bills into law that alter and expand employer obligations under California’s employment laws, including measures regarding pay transparency and pay reporting, expanded rights for employees to inspect personnel files, new notice requirements, and limitations on worker stay-or-pay arrangements. This Legal Update provides an overview of the most significant workplace laws that will be taking effect in the new year.
California Senate Bill (SB) 642, known as the Pay Equity Enforcement Act, expands California’s equal pay and pay transparency requirements for employers, as of January 1, 2026.
California’s Pay Transparency Law (California Labor Code section 432.2) requires employers with 15 or more employees to include “pay scale” information in all job postings. SB 642 amends the definition of “pay scale” in the law to require employers to include in all job postings “a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for a position upon hire,” rather than the salary or wage range the employer “reasonably expects to pay for the position.”
California’s Equal Pay Act prohibits employers from paying employees at wage rates less than the wage rates paid to employees of another sex, race, or...
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