California Labor Commissioner Issues FAQs Clarifying Pay Transparency Law

As we previously reported here last fall, California enacted a pay transparency law (SB 1162) requiring employers with 15 or more employees to disclose pay scales in job postings beginning January 1, 2023. The Labor Commissioner recently issued guidance in the form of FAQs to address some of the unanswered questions regarding the interpretation and enforcement of the California Equal Pay Act.

The law expands pay data reporting requirements for California employers with 100 or more employees, and requires employers with 15 or more employees to include the "pay scale" for a position in any job posting. However, the law is silent on some key issues, such as: (1) how to determine the 15 employee threshold for coverage; (2) how to calculate the "pay scale;" and (3) whether positions that are not required to be filled by a California employee are covered (i.e., remote positions that may, or may not, be performed outside of California). The FAQs provide helpful guidance