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January 2023: California Releases Guidance on Pay Scale Disclosures

03 Jan

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Update Applicable to:
All employers with 15 or more employees in the state of California.

What happened?
In our previous communication here, we set a reminder that Senate Bill 1162 (SB 1162), also known as the “California Pay Transparency,” will go into effect on January 1, 2023. This is an update to that communication.

What are the details?
On December 27, 2022, the California Labor Commissioner’s office released eagerly anticipated Frequently Asked Questions (“FAQs”) on the state’s new pay scale disclosure requirements under the Equal Pay Act.

The guidance clarifies some of the outstanding questions on compliance with the requirements introduced in SB 1162. The FAQs clarify which employers will be subject to the pay disclosure requirements and the content of the mandatory disclosures. Of note, the FAQs do not clarify whether the requirements only apply to postings made on or after January 1, 2023, or if they will apply to all postings that remain active as of January 1, 2023.

For more information, please see the links below:

Senate Bill 1162 (SB 1162)

Previous Vensure Communication (December 7, 2022)

What do employers need to do?
Employers should review the links above and refer to the FAQs for guidance on pay transparency.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's California PEO services can help you navigate complex employment laws and keep your business compliant.


This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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