At the Leichter Law Firm, APC, the Los Angeles employment law attorney, Aryeh Leichter, knows California’s newest pay transparency law, Senate Bill 1162 (SB 1162), went into effect on January 1, 2023 — along with multiple other pieces of significant workplace legislation.

The critical points from SB 1162 include new requirements for pay scale and pay data reporting, which are essential to new hires and existing employees.

To follow are important details from SB 1162 that all California employees should be aware of so they know if or when their employment rights are violated.

What is Included in California’s Pay Transparency Act?

Pay Transparency Act

California’s Pay Transparency Act (SB 1162) is a new law that requires employers with 15 or more employees to include a pay scale for job postings, including internal and external postings and job postings through third parties.

SB 1162 requires the disclosure of pay scales in job openings for all positions, internal and external. “Pay scale” is the salary or hourly wage the employer reasonably expects to pay for a position. The pay scale does not need to include bonuses, commissions, tips, or other benefits.

This new pay transparency requirement for businesses with 15 or more employees extends to job postings on a company website and third-party platforms like LinkedIn or Indeed.

For remote work positions, the pay scale must be included on all job postings if a California resident fills the situation remotely or in person. The pay scale must also be included on the posting itself, not through a link or QR code in an electronic or paper posting.

In addition, California employers of any size — not just employers with 15 or more employees — must be able to provide any worker in their employ with the pay scale for their position upon request.

In addition, SB 1162 also establishes new annual pay data reporting requirements for employers with 100 or more employees. This addition builds upon California’s Pay Data Reporting (PDR) system, requiring employers with 100 or more employees to submit annual reports to the California Civil Rights Department to help employers identify and address potential wage disparities based on race, ethnicity, sex, and other protected characteristics.

One of the new obligations SB 1162 creates for businesses is the obligation to report data not only for their W-2 employees but also for workers supplied by labor contractors.

The deadline for employers to submit their annual pay data reports is the second Wednesday of May of the following year, a change from the previous reporting deadline of March 31.

Is Your California Employer Failing to Disclose Pay Scales?

Contact Aryeh Leichter, the Leichter Law Firm, APC founder, and employment law attorney in Los Angeles County today to discuss the legal remedies that may be available for your unique workplace circumstances today, starting with a free consultation by calling (818)-915-6624 or contacting the firm online.

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