Just in time for the new year, California employers finally received some clarity about their obligations under California’s new pay transparency law, which goes into effect on January 1, 2023. As discussed in more detail here, SB 1162 not only expands pay data reporting requirements for California employers with 100 or more employees, but the new law also requires employers with 15 or more employees to include the pay scale for a position in any job posting. As the deadline for compliance grew near, many employers questioned whether and how the new law might impact their workforce. Thankfully, the California Labor Commissioner has answered some of those questions as they relate to disclosing “pay scales” to applicants and current employees:

• Which employers are covered? Employers with 15 or more employees are covered by the new law. Whether or not an employer meets the “15 or more employees” threshold now aligns with the Labor Commissioner’s method for counting employees for the purpose of 2022 COVID-19 Supplemental Paid Sick Leave and minimum wage rates. In other words, the 15-employee threshold applies when an employer reaches 15 employees at any point in a pay period. Importantly, an employer with 15 or more employees need have only one employee currently located in California in order for the law to apply. While bone fide independent contractors are excluded when counting employees, exempt employees, part-time workers, minors, and new hires are all included when...

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