Effective January 1, 2023, Senate Bill 1162 requires California employers to include pay scale information on job postings and report certain pay data. Employers are still prohibited from asking applicants about their pay history including compensation and benefits.
For All Employers:
- If an applicant requests the pay scale for a position, you must provide it.
- You must maintain job title and compensation records for each employee for the duration of their employment plus an additional three years following the termination of their employment.
For Employers with 15 or more Employees:
- You must include the pay range you expect to pay for the position on all job postings.
For Employers with 100 or more Employees:
- You must submit an annual pay data report to the California Civil Rights Department that discloses the median and mean hourly rates by race, ethnicity, and sex.
Failure to comply with these requirements could result in a civil penalty between $100 to $10,000 per violation. The law also provides a private right of action for injunctive relief. To prepare for these new requirements, Employers should modify their job descriptions, HR policies, and practices.
Should you have any questions, reach out to us at Questions@DPAAttorneys.com or (760) 372-0007
