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Governor Newsom Imposes Greater Pay Transparency Requirements on California Employers


On Sept. 27, Gov. Gavin Newsom signed into law Senate Bill (SB) 1162. As previously reported, SB 1162 significantly expands pay reporting and disclosure requirements for most California employers.

Effective Jan. 1, 2023, California employers must disclose pay ranges in job postings and make pay scale information available to current employees upon reasonable request. The law also extends the California Labor Code’s retention rules to require employers to maintain records of the job title and wage history for each employee for the duration of the employee’s employment and for three years following separation.

California employers must prepare for submission of an annual pay data report with new categories of mandatory pay data, including the median and mean hourly rates for each combination of race, ethnicity and gender within each specified job category. Employers with 100 or more workers engaged through labor contractors must submit a separate pay data report. The first report is due May 10, 2023 and must include pay data for this calendar year.


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