Update Applicable to:
All employers with 15 or more employees in the state of California.
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.
Below are several hyperlinks to an article by Seyfarth that contain a quick summary of the information provided by the FAQs:
- Who Must Comply?
- Does This Apply to Remote Postings?
- What Must Be Disclosed?
- How Can Employers Make Disclosures?
- Reminder of New Record Retention Requirement
- What Should You Do to Prepare?
For more information, please see the links below:
What do employers need to do?
Employers should review the links above and refer to the FAQs for guidance on pay transparency.