California’s SB 1162 to Demand Pay Transparency

 In Employment Law, In the News

New Law Requires Employers to Provide Pay Scales for Posted Positions

The days of keeping salaries under wraps have come to an end with the passage of Senate Bill 1162. The law expands the pay data report requirements for private employers with over 100 employees and requires employers to provide the pay scale for an employee’s current position upon request. Finally, the bill mandates that employers with 15 or more employees include a pay scale for all job postings.

At Levin & Nalbandyan, we know the importance of pay transparency and have long fought against pay discrimination in Los Angeles. With the passage of this law, we hope to help hold companies accountable for non-compliance. If your employer fails to comply with this or another law, contact our office at (213) 232-4848 to schedule a free consultation. 

What Does California’s SB 1162 Do?

On September 27, 2022, California Governor Gavin Newsom signed Senate Bill 1162 (SB 1162)  into law. The bill significantly expands the pay data report requirements for private employers with 100 or more employees.

The pay data report provided to the Civil Rights Department within the Business, Consumer Services, and Housing Agency must include the “median and mean hourly rate for each combination of race, ethnicity, and sex with each job category.”

It would also require that employers provide an employer with the pay scale for their current position if requested. Finally, the law mandates that employers with 15 or more employees provide a pay scale for any posted job positions including those posted with third-party companies.

How Does It Affect Pay Transparency?

Proponents of the bill argue that the law is a step in the right direction for pay transparency. The hope is that by requiring employers to post pay scales and provide more detailed information in pay data reports it will end pay discrimination based on sex, race, or other factors.

What If My Employer Does Not Comply with SB 1162?

The law mandates civil penalties for employers that fail to comply. As noted in the legislation, the bill permits a civil penalty not to exceed $100 per employee for failing to file the required pay report and up to $200 per employee for subsequent violations. 

If your employer engages in discriminatory practices, they may be held liable through a separate legal action. It is strongly recommended that you speak with an attorney about your potential case. It is important to contact an attorney as early as possible in the process to ensure that your rights are protected.

Contact Our Office for More Information

If you believe that your employer is engaging in discrimination or fails to comply with state or federal law, you should contact our office to schedule a consultation. Learn more about how we can help you hold a company accountable for its wrongdoing. 

Call (213) 232-4848 to speak directly with an attorney. All consultations are free and confidential. With decades of combined legal experience, we have successfully represented workers in discrimination lawsuits throughout Los Angeles. There are no fees unless we win. Call now to get started.

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