Governor Newsom just signed SB 642 into law, making big changes to California’s pay transparency and equal pay requirements. The law goes into effect January 1, 2026, and employers need to start preparing now.
For a full overview of the other employment bills signed and vetoed by the Governor impacting employers in 2026, you can read my earlier post here: New 2026 Employment Law Requirements in California: Key Bills Signed, Vetoed, and What’s Next. Zaller Law Group will also be hosting a webinar on October 30, 2025, covering SB 642 and other new employment laws for 2026 — details and registration link are included at the end of this post.
Here are five key updates California employers should know about SB 642:
1. “Pay scale” now means a good faith estimate of pay at hire
Employers must provide or post a realistic, good faith pay range reflecting what they actually expect to pay a new hire — not a broad range.
If you have 15 or more employees, that range must appear in all job postings.
2. Expanded definition of “wages” and “sex”
The bill clarifies that for Equal Pay Act purposes, “wages” and “wage rates” include all forms of pay — bonuses, stock options, benefits, travel reimbursements, and allowances.
“Sex” now tracks the definition under the Government Code, explicitly including gender identity and gender expression.
This ensures broader protection under California’s Equal Pay Act and increases the scope of what must be analyzed for pay equity.
3. Longer statute of...
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