Pay transparency laws have gathered steam across the country. California follows Colorado, Connecticut, Maryland, Nevada, Rhode Island, Washington, New York City, Cincinnati, and Toledo, among other jurisdictions, in enacting legislation to require employers to disclose wage information to job applicants, and in some instances, to current employees. Advocates of the new law assert that it will help drive pay equity across genders and nationalities. After intense floor hearings in the state assembly and senate, and five major amendments, on September 27, 2022, Governor Newsom signed Senate Bill 1162, which goes into effect on January 1, 2023.
This sweeping new law imposes two significant requirements on covered employers: job-posting requirements and pay data disclosures. The law requires employers with 15 or more employees to include a pay scale in job postings starting January 1, 2023. Companies with 100 or more employees must report to the state the pay data of their employees and contractors by race, ethnicity and gender.
Pay Scale Disclosures
Job postings. Both private and public employers must follow the new wage disclosure requirements for job postings. This requirement is meant to address wage disparities at the beginning of employment. Newly revised Labor Code section 432.3 applies to employers with 15 or more employees. Covered employers are required to include a pay scale for the job opening being advertised. This includes third-party postings used by employers....
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