Patrick Miller-Bartley
Thu, 10/13/2022
Beginning on January 1, 2023, California’s SB 1162 will require California companies with over 15 employees to include pay scale information in job postings. This means that nearly 200,000 employers will soon have to provide the salary or hourly wage range that they “reasonably expect” to pay for the position.
In doing so, California will join the ranks of jurisdictions pushing for greater pay transparency, including states like Colorado and Washington, and municipalities like New York City. And SB 1162’s transparency extends beyond its headline mandate, also requiring that such companies provide current employees with their own positions’ pay scales upon request.
Additionally, employers with more than 100 employees will need to provide reports to the California Civil Rights Department detailing, among other things, the mean and median hourly rates — across ten job categories — paid to employees based on their race, ethnicity, and sex. These large employers will also be required to submit pay data for workers that they hire through labor contractors.
These requirements come with steep penalties for failure to comply. If a business does not provide the required pay ranges, an employee or job applicant may file a complaint with the California Division of Labor Standards Enforcement, who can then levy a per-violation fine of between $100 and $10,000. Alternatively, these individuals may also avail themselves of a private right of action for injunctive relief or any other relief that a court deems appropriate. Employers who fail to meet the reporting requirements face penalties of $100 per employee — or $200 for repeat offenders.
If you are a worker or job applicant in California and have questions about your employment rights and benefits, including your right to salary information under SB 1162, please do not hesitate to reach out to the attorneys at MSE through our website.
