To help guide employers toward compliance with the state's expanded pay disclosure law, the released FAQ guidance.
In 2020, California enacted a reporting obligation for private employers with 100 or more employees that file the federal annual Employer Information Report (EEO-1) to include pay data information in a report to the Department of Fair Employment and Housing (DFEH) (now called the California Civil Rights Department).
The initial iteration of the law required employers to share the number of employees categorized by race, ethnicity and sex categorized by position: officials and managers, professionals, technicians, sales workers, administrative support workers, craft workers, operatives, laborers and helpers, and service workers.
Last year, state lawmakers enacted a measure to expand the requirements, including the need to include a pay scale in all job postings.
Taking effect as of January 1, 2023, Senate Bill 1162 now mandates that within each job category, employers must share the median and mean hourly rate by each combination of race, ethnicity and sex. The deadline to submit the data has moved to the second Wednesday of May each year.
In addition, employers with more than 15 employees now need to include a pay scale in all job postings, and all employers—regardless of the number of employees—are required to provide the pay scale for a current employee's position upon request.
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