California Pay Transparency Under New Law

Job seekers in California will no longer have to take a shot in the dark when asked about their salary expectations. Effective January 1, 2023, employers with 15 or more employees are required to post the minimum and maximum salary range for any job within the state. The state’s pay transparency law aims to help alleviate sex-based wage disparities by establishing a level field for pay practices.

Since 2018 all employers in California have been required to disclose a position’s pay scale to applicants for employment upon request. While that requirement will remain in place, California’s State Bill 1162 amends Labor Code Section 432.3 and requires that employers with fifteen or more employees also include a pay scale in all job postings, including those posted on third-party platforms. A pay scale is a salary or hourly wage range that the employer reasonably expects to pay for the position.

California is the sixth jurisdiction behind Colorado, Ithaca, NY, Jersey City, NJ, New York City, NY, and Westchester County, NY, requiring wage transparency in job postings. Seven other jurisdictions: Connecticut, Maryland, Nevada, Rhode Island, Washington, Cincinnati, OH, and Toledo, OH, require that employers disclose wage ranges upon request.