As of January 1, 2023, California will require most employers to disclose "pay scale" information in job postings. SB 1162 also imposes a host of new reporting and pay transparency requirements for larger employers, including filing annual pay data reports beginning in May 2023.

• More California employers will be required to increase pay transparency for job applicants, existing employees, and workers hired through labor contractors.
• Most California employers will now be required to disclose pay ranges for new job postings and, upon request by employees, in currently occupied positions.
• Failure to comply with the new requirements can result in significant civil penalties.

On September 27, 2022, Governor Newsom signed Senate Bill 1162, which expands California's pay transparency requirements for new applicants and existing employees. The law applies to most—and in some cases all—employers, and failure to comply can result in significant civil penalties. Although the law does not go into effect until January 1, 2023, employers can and should start preparing now for its implementation.

California is not alone in this effort to increase pay transparency. Similar laws exist in Nevada, Colorado and Washington and the New York State Legislature recently passed a similar bill to require employers with four or more employees to include salary ranges in their job postings.

SB 1162, which amends Section 12999 of the Government Code and Section 432.3 of the Labor Code, includes the...

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