All Employers with CA Applicants and Employees
January 1, 2023
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SB 1162 increases employer requirements for disclosing pay scales in job postings and increases requirements for both applicants and employees. Additionally, the bill increases the types of pay data required to be reported to the state. The following are key requirements employers should note.
Pay Transparency Requirements. For the past few years, employers have been required to provide a position’s pay scale upon request by a California job applicant. The current bill adds new disclosure requirements for applicants as well as expands the disclosure requirements to current employees.
- “Pay scale” has been clarified to mean the “salary or hourly wage range that the employer reasonably expects to pay for the position.”
- The bill removes the requirement that applicants must make the pay scale request after an initial interview. Now, applicants will be able to make the request at any point in the recruiting process.
- Employers with 15 or more employees must include a position’s pay scale in all job postings. Employers must provide the pay scale to third-party job posters who are also required to include the pay scale in job postings.
- Upon request, employers must provide existing employees with their position’s pay scale.
- Employers must maintain records of job title and wage rate history for all employees for three years following termination. Failure to maintain required records will result in a rebuttable presumption in favor of the employee’s claim.