With California's new pay transparency and pay reporting obligations under S.B. 1162 now in effect, employers are seeking answers on various open questions for complying with the new law. As we previously reported, S.B. 1162 requires employers with 15 or more employees to include pay scale information in each job posting for positions in California, as well as disclose information to current California employees upon request. Failure to comply with these requirements can result in significant civil penalties (ranging from $100 to $10,000 per violation) and possible government investigations or private lawsuits.

Although we are still waiting for more formal guidance, California Department of Industrial Relations (DIR) recently released new Frequently Asked Questions (FAQs) that provide some key interpretations of S.B. 1162.

• Extraterritorial Application: One of the major open questions for S.B. 1162 was how to count employees to determine coverage. The FAQs state that the pay transparency requirements under S.B. 1162 will cover any employer that has at least 15 employees anywhere (even outside California) and at least one of those employees is in California.
• Applies to Remote Jobs: The FAQs clarify that the new law applies to any job that can be performed by someone based in California, either working in person or remotely. This means that the Labor Commissioner believes the pay scale disclosure requirements apply to any remote positions where the employer could...

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