California (CA) SB 1162 Pay Scale Disclosure and Pay Data Reporting Updates

Background: The CA Equal Pay Act has been around for decades with the intent of prohibiting employers from paying its employees less than employees of the opposite sex for equal work. Further, the Equal Pay Act has been amended almost annually since 2016. The latest significant amendment was via the passage of SB 1162 which brought about significant changes. The two major areas of focus are with regards to pay scale disclosure in job postings and changes in pay data reporting.

Employers with 15 or more employees nationwide, with at least one employee located in CA, must include a pay scale in job postings that can be filled by CA workers.

Penalties for noncompliance of the new pay scale disclosure requirements range from $100 to no more than $10,000 per violation.

CA employers with 100 or more employees and/or 100 or more workers hired through labor contractors, are subject to pay data reporting due May 10, 2023. In previous years, the report was due by the end of March; however, SB 1162 amended the deadline to the second Wednesday in May each year.

Penalties for failure to submit a report each year could result in a fine of $100 per employee and $200 per employee for subsequent violations. Additionally, the Civil Rights Department (CRD) is entitled to recover its costs in any enforcement action.


The FAQs referenced below, which can be found in the link above, may be of particular interest to employers.

Q15 – Who is counted as an employee to determine whether an employer has 15 or more employees?

Q32 – Must the pay scale include bonuses, tips or other benefits?

Q31 – How is “pay scale” defined?

Q33 – Must the pay scale include piece rate or commission wages?

Q34 – Can employers link to the salary range in an electronic posting or include a QR code in a paper posting that will take an applicant to salary information?

While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering any commitments.

About Michelle Cammayo, Compliance National Practice Leader, Employee Benefits

Michelle Cammayo has close to 20 years of Employee Benefits experience specializing in all lines of health and welfare benefits. Today, Michelle works closely with clients and partners to provide guidance in areas of the law including ERISA, HIPAA, COBRA, FMLA and PPACA. She is also the IMA National Practice Leader for Compliance and endeavors to ensure IMA helps its clients manage and eliminate risk in the most effective manner. She is passionate about educating others and her passion for this shined in the COVID era where Michelle conducted weekly and then monthly webinars providing guidance to employers. Her podcast, Cammayo’s Compliance Talk, has gained popularity in the last three years to become a favorite amongst our clients. She also contributes regularly to our Blog and has authored several articles for industry-related newsletters. Michelle’s consultative approach with employers provides practical advice as employers endeavor to be compliant.

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