On Sept. 27, Gov. Gavin Newsom signed Senate Bill 1162 into law, which provides for pay transparency in job postings for most California employers. Under the new law, employers must provide a pay scale on all job postings and to current employees who ask for the information. Larger companies will also have to submit detailed pay data reports.
Pay range in job postings
As of Jan. 1, 2023, California employers with at least 15 employees will be required to include a pay scale with any job posting. The law defines “pay scale” as “the salary or hourly wage that the employer reasonably expects to pay for the position.” The posting will not need to include other aspects of employee compensation such as bonuses, commissions or benefits. Additionally, employers must provide any third-party services they use to post jobs with the pay scale information to be included in the job posting.
While employers do not have to volunteer pay scale information to their workforce, employees are entitled to the pay range for their positions if requested. The requirement to provide pay ranges to existing employees upon request applies to all employers, regardless of size.
Pay data reports for larger employers
Larger employers who currently file EEO-1 reports with the U.S. Equal Employment Opportunity Commission will have additional obligations. By May 10, 2023, employers with 100 or more employees will be required to submit pay data reports to the California Civil Rights Department. The reports...
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