New California Pay Transparency Requirements

California employers will need to increase pay transparency beginning January 1, 2023. Governor Newsom signed Senate Bill 1162 ("S.B. 1162") on September 27, 2022, amending California Labor Code § 432.3.

Prior to S.B. 1162, California employers were already prohibited from inquiring about an applicant's salary history. Employers were also required to provide the pay scale for a position upon a reasonable request by an applicant.

The new bill takes the requirements a step further. It continues to require all employers, regardless of number of employees, to provide the pay scale for a position to any applicant upon receipt of such request from the applicant. In addition, any employer who receives a request from a current employee also must provide the pay scale for the employee's current position. All employers must also maintain job records reflecting the job title and wage rate history for each employee during their employment, and for three years afterward.