November 29, 2022

Volume XII, Number 333


November 28, 2022

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Governor Newsom Signs Bill Imposing Game-Changing Pay Transparency Requirements

On September 27, 2022, California Governor Gavin Newsom signed the state’s pay transparency bill into law, imposing several new and unprecedented requirements on California employers. With the signing of Senate Bill (SB) 1162, effective January 1, 2023, California will join Colorado, Washington, New York City, and other municipalities, in requiring that employers disclose pay ranges in job postings. California will break new ground in also requiring reporting on other demographic and pay information to the state. The required reporting is due in May each year, starting in 2023.

Specifically, SB 1162 requires employers with 15 or more employees to disclose, in job postings, a “pay scale,” which the law defines as the “salary or hourly wage range that the employer reasonably expects to pay for the position.” The law further adds a requirement that employers provide the pay scale to current employees upon request.

In addition, the law imposes a first-of-its-kind, at least in the United States, requirement that employers with 100 or more employees report to the state “[w]ithin each job category, for each combination of race, ethnicity, and sex, the median and mean hourly rate.” It also imposes new reporting requirements relating to contingent workers

In a statement announcing the signing of SB 1162, Governor Newsom touted the bill as part of the state’s efforts to improve pay equity, particularly for women. The new law adds to California’s existing requirements to submit pay data to the state annually for existing employees and to disclose pay scales to current employees upon request.

© 2022, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.National Law Review, Volume XII, Number 272

About this Author

Tracie L. Childs San Diego Employment Law, Litigation, Class Action, Higher Education, Pay Equity, Wage and Hour, Ethics Compliance, Investigations and Whistleblower Response

Tracie Childs focuses her practice on defending national employers against class, representative and collective actions.  She also has extensive experience representing Fortune 500 companies, for profit and non-profit organizations, public, and quasi-public entities, in defense of various complex labor and employment issues. She handles litigated matters from inception to verdict, and has jury trial experience in the following areas: wrongful termination, harassment, discrimination, breach of employment contract, whistleblower, qui tam/False Claims Act, corporate D&O disputes...

Sarah Platt, Ogletree Deakins Law Firm, Employment Law Attorney
Of Counsel

Sarah Platt is of counsel in the firm’s Milwaukee office. She represents employers in all areas of employment law, including:

  • Proactive, practical counseling regarding hiring, discipline, accommodation, leave, and termination issues to avoid litigation and create a strong record to defend employment actions should litigation arise;

  • Drafting strong employment policies to comply with state and federal laws and guide employee conduct;

  • Investigating and responding to...

Senior Marketing Counsel

In the Senior Marketing Counsel role, Zachary develops strategy for the firm’s blog and other content. He serves as a lead writer for articles and blog posts for publication on the firm’s website both individually and in consultation with firm attorneys. He also works closely with the Client Services department and firm attorneys to develop relevant content, including through use of webinars, publications, blogs, podcasts, and graphics.

Prior to joining Ogletree Deakins, Zachary served as a Senior Reporter for Law360, a leading online legal news publication, covering the sports and...