California’s Legislature recently ended another busy session, sending a slew of new employee-friendly bills to Governor Gavin Newsom, who was not stingy with his pen. As a result, many California employees will wake up on January 1, 2023, with novel and enhanced rights related to pay data, protected marijuana use, and bereavement leave, among others. There are also several pre-existing laws governing pay and privacy with provisions set to kick in with the New Year.

Below we discuss the changes and laws warranting the immediate attention of any company with employees in California. Unless otherwise specified, the new laws discussed below take effect on January 1, 2023.

Laws Related to Compensation

SB 1162 (Pay Data Report and Pay Scale Disclosure)

In 2020, California enacted SB 973, requiring private employers with more than 100 employees to submit an annual pay data report to the California Civil Rights Department (“CRD”) by March 31 each year.^[1] SB 1162 expands and modifies these reporting obligations in three important ways, and adds a new job-posting disclosure.

First, it closes a perceived loophole used by companies that hire employees through “Labor Contractors”—i.e., “an individual or entity that supplies, either with or without contract, a client employer with workers to perform labor within the client employer’s usual course of business.” Any business with 100 or more employees “hired through labor contractors” within the prior calendar year will need to submit a...

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