The last legislative session in California brought with it a wave of changes to California employment law.
California continues to expand its pay equity and transparency framework through robust reporting obligations, increasing potential exposure for non-compliance. Among these are two notable legislative amendments to the California Equal Pay Act, Senate Bill (SB) 642 and SB 464 signed into law by Governor Gavin Newsom on October 8.
Under California Labor Code § 432.3(e), employers are prohibited from seeking or using an applicant’s salary history, including compensation and benefits, in the hiring process. Specifically, an employer may not request an applicant’s salary history and may not rely on such information in deciding whether to extend an offer or what compensation to offer, unless the applicant voluntarily and without prompting discloses that information. In addition, an employer may not rely on prior salary, by itself, to justify any pay disparity based on sex, race, or ethnicity. Employers must also provide the pay scale for a position to an applicant upon a reasonable request.
Private employers with 100 or more employees, as well as those with 100 or more workers hired through labor contractors, are required to comply with annual pay data reporting requirements administered by the California Civil Rights Department (CRD).
Covered private employers...
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