What Does California’s Pay Transparency Act Mean for You?

Your Rights Under the State’s New Pay Transparency Law

A California law passed earlier this year will make it easier for job seekers to see how much they could be making in a position. The state’s Pay Transparency Act will go into effect on January 1, 2023, and will require most employers to include the pay scale in a job posting.

At Levin & Nalbandyan, we fight for Los Angeles workers who have been mistreated or discriminated against by their employers. Our lawyers have over 30 years of experience representing people who have been treated unjustly. Contact our office today at (213) 232-4848 to speak with an employment law attorney today. All case evaluations are free and without obligation to retain our services.

What is California’s Pay Transparency Act?

Senate Bill No. 1162 was signed into law by California Governor Gavin Newsom on September 27, 2022. The law amends Section 12999 of the Government Code and Section 432.3 of the Labor Code. One of the main additions to the Labor Code involves the requirement that employers with 15 or more employees provide the minimum and maximum pay scale for any job posting. 

It also requires an employer to provide an employee with the pay scale for their position upon request. The law goes into effect on January 1, 2023, and is largely intended to reduce pay disparities and make things more fair across the board. By passing the law, California joins several other jurisdictions in promoting pay transparency.

What Does California’s Pay Transparency Act Require?

California’s Pay Transparency Act would not only make it easier for job applicants to know salary expectations before they apply, but it would also require larger employers to submit pay data reports and would expand the information that needed to be collected. 

California’s Pay Transparency Act requires:

  • Employers with 100 employees or more to submit a data report on or before the second Wednesday of May 2023 and each year thereafter.
  • Employers with 100 or more employees hired through labor contractors would have to submit a separate pay data report.
  • The pay data report would have to include the “median and mean hourly rate for each combination of race, ethnicity, and sex within each job category.”
  • Employers would be required, upon request, to provide an employer with the maximum and minimum pay scale for their current position.
  • Employers with 15 or more employees would be required to provide a pay scale for any job posting.
  • Employers must maintain detailed records of job titles and wage rate history for employees.
  • If a third party is retained to post job advertisements, an employer with 15 or more employees must provide them with the pay scale for any positions advertised.

The bill also imposes strict penalties for non-compliance. For instance, an employer who fails to comply with data reporting requirements could face a civil penalty of up to $100 to $200 per employee. 

Contact Our Office for a Free Case Evaluation

If your employer fails to comply with California’s Pay Transparency Act or any other state or federal law, contact our office. We offer free, confidential case evaluations on all employment law cases. Call (213) 232-4848 to get started.




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