California Expands Employer Pay Scale Disclosure And Data Reporting Requirements

On September 27, 2022, Governor Gavin Newsom signed SB 1162, which takes effect on January 1, 2023. The new law requires employers to make salary and hourly wage ranges for positions available to applicants and employees, and expands pay data reporting requirements.

California joins a growing list of other states and municipalities such as Colorado, Washington, and New York City, that have adopted similar measures in an effort to identify purported pay disparities. Here is what California employers need to know:

Pay scale Information Must Be Made Available to certain Employees and Applicants

Starting on January 1, 2023, all California employers will be required, upon request, to provide employees and applicants for employment with the "pay scale" for the position in which the individual is either currently employed or to which they are applying. "Pay scale" is defined as the salary or hourly wage range that the employer reasonably expects to pay for