California: Enacts Pay Transparency for Pay Equity Act

Effective January 1, 2023, all California employers with 15 or more employees are required to include the salary or hourly wage range that the employer reasonably expects to pay for the position in all job postings. This applies whether the employer posts the position itself or engages a third party to perform the posting.  The new law also requires covered employers to provide current employees who request it with the pay scale for their current positions.

The new law also requires employers to maintain job title and compensation records for each employee from the inception of employment until the third anniversary of the termination of employment.

Finally, the new California law requires any private employer with 100 or more employees to submit an annual pay data report to the California Civil Rights Department that discloses the median and mean hourly rates within each listed job category by race, ethnicity, and sex.