California has introduced some significant and widely applicable new employment laws that took effect on Jan. 1, 2023, unless otherwise stated.
Minimum Wage Increases
On Jan. 1, 2023, the California state minimum wage increased to $15.50 per hour for all employers, regardless of size. Some cities and counties have even higher local minimum wage requirements.
At present, California has more than 35 cities and counties with their own minimum wage requirements, including but not limited to Los Angeles, Menlo Park, Oakland, San Francisco and South San Francisco, San Jose, San Diego and Santa Clara. In light of the significant number of varying requirements, employers should reevaluate any minimum wage requirements in the cities and counties where they have employees to ensure they do not run afoul of any requirements that may have changed in the new year.
Pay Transparency and Updated Reporting Requirements
Per SB 1162, as of Jan. 1, 2023, employers must provide the pay scale for a position to any job applicant, upon receipt of such request from the applicant. The amended Cal. Lab. Code § 432.3 also requires an employer that receives a request from an employee to provide the pay scale for the position in which the employee is currently employed. Additionally, any employer with 15 or more employees is now required to include the pay scale for any job posting. This requirement also extends to any third-party company hired by an employer to announce or publish an open position.
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