Written By Digital Content Editor Thomas Ahearn
On January 1, 2023, California Senate Bill 1162 (SB 1162) took effect and will require employers in the state with 15 or more employees to include the “pay scale” for a position in any job posting and will also require them to provide an employee with the pay scale for the position in which the employee is employed.
SB 1162 will also require employers with 15 or more employees that engage a third party to announce, post, publish, or otherwise make known a job posting to provide the pay scale to the third party and would require the third party to include the pay scale in the job posting.
California Governor Gavin Newsom signed SB 1162 in September 2022 and the bill “requires employers to make salary ranges for positions available to applicants and employees and expands pay data reporting requirements to better identify gender and race-based pay disparities,” according to a press release on the Governor’s website.
“California has the strongest equal pay laws in the nation, but we’re not letting up on our work to ensure all women in our state are paid their due and treated equally in all spheres of life,” Governor Newsom stated in the press release. He added that SB 1162 will “bring new transparency to tackle pay gaps.”
Existing law in California approved by Newsom in 2020, Senate Bill 973 (SB 973), already requires employers to provide the pay scale for a position to applicants applying for employment upon reasonable request. Existing law in California also defines the pay scale for these purposes to mean “salary or hourly wage range.”
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