California pay scale requirements have been in place for several years, yet many employers remain uncertain about what compliance truly requires. Now that we are in 2026, recent amendments to California’s pay transparency laws make one point clear. Compliance is no longer satisfied by posting a pay range and moving on. The focus is now on whether the pay scale reflects reality.

Labor Code section 432.3 requires covered California employers to disclose pay scales in job postings and to provide a pay scale upon request to applicants and employees (Lab. Code, § 432.3 (a), (c)). Although many employers initially treated pay transparency as a posting requirement, enforcement agencies and plaintiffs’ attorneys are increasingly focused on a different question: Was the pay range meaningful and made in good faith?

What is a “Pay Scale” Under California’s 2026 Amendments

Effective January 1, 2026, amendments to California’s pay scale law clarified what qualifies as a compliant pay scale. A pay scale must reflect a good-faith estimate of the salary or hourly wage the employer reasonably expects to pay for the position at the time of hire (Lab. Code, § 432.3 (a)). This is not a theoretical range, a long-term promotional ceiling, or a placeholder tied loosely to a job title. It is the range the employer genuinely expects to use when making an offer.

This clarification matters because many employers responded to earlier pay transparency laws by posting extremely broad pay ranges. Although wide ranges may have felt safer, they often undermine the purpose of the statute and increase legal risk. A pay scale that spans tens of thousands of dollars without a clear hiring rationale can invite scrutiny, particularly when actual offers consistently land at one end of the range.

How Pay Scale Compliance Connects to California’s Equal Pay Law

Pay scale compliance does not exist in isolation. It is closely tied to California’s Equal Pay Act. The Equal Pay Act prohibits employers from paying employees different wage rates for substantially similar work based on sex, race, ethnicity, or other protected characteristics, unless the employer can establish a bona fide factor justifying the difference (Lab. Code, § 1197.5 (a), (b)).

When evaluating equal pay claims, enforcement agencies and courts look beyond base wages alone. Compensation includes wages and other forms of remuneration, which may include bonuses, incentive pay, and equity-based compensation (Lab. Code, § 1197.5 (a)). Pay scales that are disconnected from actual hiring practices can make it far more difficult for employers to defend pay decisions under California’s equal pay law.

Ongoing Liability for Pay Decisions

Another issue California employers often underestimate is the continuing nature of pay violations. Each paycheck that reflects an unlawful pay practice may constitute a separate violation, extending potential liability over time (Lab. Code, § 1197.5 (h)). As a result, outdated or poorly supported pay scales do not simply create risk at the point of hire. They can compound exposure if they continue to influence compensation decisions.

Failure to comply with California pay scale disclosure requirements can also result in civil penalties enforced by the Labor Commissioner, with penalties assessed on a per-violation basis (Lab. Code, § 432.3 (d)).

What California Employers Should Do Now

For California employers, the takeaway is not that pay transparency is unmanageable. Rather, compliance requires intention. Job postings should reflect what the employer actually expects to pay new hires. Pay ranges should align with real hiring practices, not aspirational future growth. Employers should be able to explain how pay scales are set and why individual offers fall where they do within the range.

Hiring managers also need guidance. Many pay transparency violations occur not because HR policies are flawed, but because managers treat posted pay ranges as flexible suggestions rather than legally meaningful representations. Training managers on California pay scale requirements is one of the most effective ways to reduce risk.

The Bottom Line on California Pay Scales in 2026

California’s pay transparency laws are not designed to eliminate discretion, but they do require accountability. Employers who take a thoughtful approach to pay scales, document compensation decisions, and align job postings with actual practices are in the strongest position to comply with California law and defend their choices.

If you are unsure whether your current pay scales would withstand scrutiny in 2026, now is the time to review them. Small, proactive adjustments can prevent far more significant problems later.