California has recently enacted several new laws that will affect California employers. A brief summary of the key points of these new laws is below.

Pay Transparency

On September 27, 2022, California Governor Gavin Newsom signed Senate Bill 1162, which amends Section 12999 of the Government Code and Section 432.3 of the Labor Code. The new law requires certain pay disclosures, both in job postings and in annual pay data reporting.

• Beginning January 1, 2023, California employers with 15 or more employees must include the pay scale for a position in every job posting. “Pay scale” is defined as “the salary or hourly wage range that the employer reasonably expects to pay for the position.” If the employer engages a third party to “announce, post, publish, or otherwise make known a job posting,” the employer must provide the pay scale to the third party to include in the job posting. The law also requires an employer, upon request, to provide to an employee the pay scale for the position in which the employee is currently employed.
• The new law requires California employers with 100 or more employees to submit an annual pay data report to the California Civil Rights Department that discloses the median and mean hourly rates within each listed job category, by race, ethnicity and sex within each job category. If the employer hires employees through labor contractors, it also must submit a separate pay data report for those employees. The reports are due beginning May 10, 2023,...

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