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California Passes “Pay Transparency” Law

by Melissa Whitehead | | September 29, 2022

Governor Newsom has signed SB 1162, creating new obligations for employers in job postings and pay data reporting.

Job Posting Requirements:

SB 1162 requires employers with 15 or more employees to include a “pay scale” in job postings. A “Pay scale” is defined as, “the salary or hourly wage range that the employer reasonably expects to pay for the position.” Third-parties retained to “announce, post, publish, or otherwise make known a job posting” must include a pay scale in the posting. Employers must provide pay scale information to both applicants and current employees, upon request.

Employers must also maintain records of the job title and wage rate history for each employee for the duration of their employment plus an additional three years after their employment ends.

Pay Data Reporting Requirements

Private employers with 100 or more employees must add to their California Pay Data Reports the median and mean hourly rate paid in each job category for each combination of race, ethnicity, and sex. Employers who hire 100 or more employees through labor contractors must submit a separate pay data report for those employees, including the names of the labor contractors. SB 1162 also adds civil penalties for failure to submit pay data reports — $100 per employee for the first violation, and $200 per employee for the second.

Read the full text of SB 1162, here, and Governor Newsom’s Press Release about the new law, here.  We will discuss SB 1162 and all of the new employment laws at our 26th Annual Legal Update.  Register here.

See you soon!

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