With the swipe of a pen California joins Colorado and several other states in enacting pay transparency laws requiring employers to provide additional pay-related data to applicants and employees.

Set to take effect January 1, 2023, SB 1162 will require employers to disclose additional pay-related data, including providing pay ranges on job postings and to those employees who request such information.

The new law also includes changes to employer pay data reporting obligations.

SB 1162 mandates the following changes:

Pay data reporting:

Employers should calendar the revised pay data reporting dates to avoid late filings. Those accustomed to filing consolidated reports or an EEO-1 in lieu of a pay data report should begin preparing for new and/or multi-reporting obligations.

Pay scale requirements:

Employers should begin modifying existing job postings to include pay scale information and begin preparations to include pay scale information in all job postings beginning January 1, 2023.

No publication requirement

One requirement initially included in the bill, however, did not survive the legislative process.  While SB 1162 proposed that the Civil Rights Department publish employers’ pay data on a public website, an amendment removed the public disclosure requirement.  As amended, the Department will only be allowed to publish “aggregate” reports that do not associate the pay data with individual employers.

[Teresa McQueen is corporate counsel for Western Growers.]

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