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ARTICLE · 03 NOVEMBER 2025

California Expands Pay Transparency Requirements

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California continues to lead the way in pay transparency legislation with the recent enactment of Senate Bill 642 (SB 642). Effective Jan. 1, 2026, SB 642 amends California's pay transparency requirements...

United StatesEmployment and HR
Philip Person
Philip Person
Connor McCoy
Connor McCoy

California continues to lead the way in pay transparency legislation with the recent enactment of Senate Bill 642 (SB 642). Effective Jan. 1, 2026, SB 642 amends California's pay transparency requirements, mandating that employers include anticipated equity compensation, such as stocks and stock options, when publishing a job opening. While this change further broadens the scope of information employers must provide to prospective employees, as of right now, it does not expressly change how "wages" are defined in other disputes under the California Labor Code.

What Does SB 642 Require?

Previously, California's pay transparency law required employers to disclose the pay scale for positions in job postings, but this did not explicitly include non-cash compensation such as stocks or stock options. SB 642 now expands the definition of "wages" and "wage rates" to include "all forms of pay, including but not limited to, salary, overtime pay, bonuses, stock, stock

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