On September 27, 2022, California Gov. Gavin Newsom signed Senate Bill 1162, a broad pay transparency bill requiring employers to include pay ranges in all job advertisements effective January 1, 2023. The bill also requires employers to submit expanded annual pay data reports that include pay data on employees hired through labor contractors to the California Civil Rights Department (CRD) beginning May 10, 2023, and every second Wednesday in May annually thereafter.
In enacting this law, California follows in the footsteps of several other jurisdictions and municipalities that have enacted similar legislation requiring pay ranges in job postings. These jurisdictions include, but are not limited to, Washington (effective January 1, 2023), Colorado (currently in effect) and New York City (effective November 1, 2022). Unlike other jurisdictions, however, California goes a step further to expand currently existing pay data reporting requirements to include reporting on mean and median pay data to “better identify gender and race-based pay disparities,” among other things.
We discuss the key requirements of the law below.
Like many other states, California currently prohibits employers from asking applicants about their salary history during the hiring process. The state also requires employers to provide the pay scale for a position to an applicant upon a reasonable request.
Effective January 1, 2023, SB 1162 will expand these requirements by:
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