Governor Newsom Approves SB 1162: Greater Pay Transparency Requirements Are Coming

On Tuesday September 27, 2022 Governor Newsom signed Senate Bill (“SB”) 1162, a groundbreaking pay transparency law.  This new law makes California the largest state requiring affirmative disclosure of pay scale information by employers.

Current law only requires employers to provide candidates the pay scale for the position the candidate is seeking at that time only upon request. However, effective January 1, 2023, SB 1162 will require employers to disclose pay scales to current employees and on job postings, as well as additional pay data reporting requirements. As of the effective date, employers with 15 or more employees will be required to include a pay scale on all job postings (and to provide that information to third parties who post those jobs). Additionally, employers, regardless of size, will be required provide a pay scale for a current employee’s position upon an employee’s request. 

Additionally, under SB 1162 there will be more robust pay data reporting beginning with the May 10, 2023, Pay Data Report.  In addition to existing pay data reporting requirements, employers will now have to report the median and mean hourly rate by each combination of race, ethnicity, and sex within each job category.  There are also new pay data reporting requirements for employees hired through labor contractors as well. 

It is crucial that all employers, regardless of size, stay up to date with pay transparency requirements, as well as ensure that your wage practices are consistent in order minimize your legal risk in relation to fair pay and discrimination claims. To set up a time to audit you pay practices and ensure you are in compliance by January 1, 2023, contact the knowledgeable Employer Lawyers at 650-573-9500.

This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute legal advice.  For information on your particular circumstances, please contact  Chauvel & Glatt at 650-881-2476 for legal assistance near you. (photo credit: depositphotos.com).

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