On September 27, 2022, Governor Newsom signed SB 1162 (the “Act”) into law, which aligns California with a growing national trend mandating pay transparency in the workplace. The Act will impose new requirements on many California employers around pay data reporting and salary disclosures effective January 1, 2023. In this post, we will discuss current California law on pay data reporting and disclosures, how the Act changes and adds to those requirements, and what steps California employers should take now to prepare for the Act’s implementation.
Current California Law: Pay Data Reporting, Pay Scale Disclosure, and Use of Salary Information
Reporting Requirements. California employers with 100 or more employees (except those who are specifically exempted, such as institutions of higher learning) are already required to file an annual Employer Information Report (EEO-1) under federal law and to submit pay data reports to the California Civil Rights Division (CRD) (formerly the Department of Fair Employment and Housing) covering the prior calendar year. Under the current law, those pay data reports, among other things, must include:
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