On September 27, 2022, Governor Newsom signed California’s new pay transparency and pay scale disclosure law. This Alert summarizes the new requirements and enforcement mechanisms, including how they depart from California’s previous pay transparency laws, as well as their impact on employers’ pay reporting and disclosure obligations.
The new requirements are set to become effective January 1, 2023, with the first pay data reports due to the California Civil Rights Department (the “Department,” formerly the Department of Fair Employment and Housing) in May 2023.
Pay Scale Disclosures in Job Postings to Employees and Applicants
The law expands California’s existing salary history law to impose new pay scale disclosure requirements on covered employers.
Under the existing law, California employers were required to provide the pay scale, meaning the salary or hourly wage range, only upon request by an applicant who completed an initial interview. The new law maintains that applicant disclosure requirement and adds that, upon a current employee’s request, covered employers will be required to provide the pay scale the employer reasonably expects to pay for such employee’s currently-held position.
California employers with 15 or more employees will also be required to include a position’s pay scale, meaning the salary or hourly rate an employer reasonably expects for the position, in any job posting, whether the employer itself posts the job or engages a third party to manage...
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