California Pay Transparency Law

Beginning January 1, 2023, employers in California will be subject to several new requirements aimed at promoting pay equity per SB-1162.

Requirements

• California employers with 15 or more employees (located anywhere) must include pay scales on all job postings
• Companies with 100 or more employees must report pay data of employees and contractors
• Employers of all sizes are required to provide a current employee the pay scale for their current position if requested
• Employers of all sizes must maintain job title and wage rate history for each employee throughout their employment and for 3 years after termination

• Employees may begin discussing this new information with their coworkers, which is protected by both federal and California law
• Employees may start asking about their own pay ranges and they’ll see your job ads and react to the pay scales provided there as well
• Employees will not necessarily know or understand why they are paid less than a coworker who they consider their equal, and you should be prepared to explain those discrepancies

What to Do Now

• Align pay ranges with specific job descriptions
• Consider doing a pay equity audit

Last updated 10.18.22. This information in this communication is general in nature, and is not intended, nor should it be construed, as legal, accounting, tax or other professional advice rendered by GreenSlate, LLC. The reader should contact his or her attorney, CPA, or tax professional prior to taking any action based upon this information.