Know Your Worth, Legally
As of January 1, 2023, California job-seekers and employees gained a powerful tool in the fight for wage equity and workplace fairness. Thanks to California’s Pay Transparency Law—Senate Bill 1162 (SB 1162)—employers with 15 or more workers are legally required to include salary ranges in all job postings. This groundbreaking law gives employees and applicants unprecedented access to pay information, allowing them to make more informed career decisions, identify pay disparities, and negotiate more confidently.
In a world where salaries were once hidden behind vague job descriptions and uncomfortable conversations, California’s transparency requirements shine a light on wage practices across industries. If you’re an employee wondering if you’re being paid fairly or a job-seeker looking to negotiate a better offer, this law gives you the leverage you’ve been missing.
Let’s break down what the law requires, how it benefits you, and how to actually use it in real-life situations.
What the California Pay Transparency Law Requires
1. Salary Ranges Must Be Posted
If a company has 15 or more employees, they must now include the pay scale for a position in any job posting. This applies to:
Internal and external job postings
Posts by third-party recruiters
Listings on websites like LinkedIn, Indeed, or company career pages
A “pay scale” is defined as the salary or hourly wage the employer reasonably expects to pay for the role. Employers cannot avoid this obligation by outsourcing hiring to a third-party recruiter—they must still provide the pay range, which must be included in the public posting.
2. Employees and Applicants Can Request Pay Ranges
Employees have the legal right to request the pay scale for their current position. Likewise, job applicants may request the salary range for a role they are considering. Employers are required to comply and cannot retaliate.
3. No Asking About Wage History
SB 1162 also prohibits employers from asking job applicants about their prior compensation. This applies to direct inquiries and indirect ones made by third-party agents. The only allowed question is: “What are your salary expectations for this role?”
4. Recordkeeping Requirements
Employers must retain job title and wage rate history records for every employee for the duration of their employment, plus at least three years. These records must be available for inspection by the Labor Commissioner and help support pay equity audits.
5. Large Employer Reporting to the CRD
Employers with 100 or more employees must submit an annual Pay Data Report to the California Civil Rights Department (CRD) by the second Wednesday in May. This report must include:
Number of employees by race, ethnicity, and sex across job categories
Mean and median hourly rate for each demographic group in each category
Pay bands, hours worked, and NAICS industry code
If employers used labor contractors in the prior calendar year, they must file a separate report for those workers.
6. Confidentiality
While the CRD collects demographic and pay information, it must maintain confidentiality of all personally identifiable information. Publicly released reports include only anonymized data.
7. Penalties for Violations
Violations carry fines of $100 to $10,000 per violation. First-time violations for omitting pay ranges may escape penalties if the employer quickly corrects the issue. Failure to submit the CRD report may result in penalties of:
$100 per employee for a first violation
$200 per employee for any subsequent violation
How Employees Can Use This Law to Their Advantage
1. Request Your Pay Range
If you’re employed and want to ensure you’re being paid fairly:
Politely ask HR or your supervisor for the pay scale of your role.
Make the request in writing and save a copy.
Frame it as a professional inquiry about pay equity.
This is especially useful if you’ve taken on more responsibilities, haven’t received a raise recently, or suspect coworkers in similar roles earn more.
2. Leverage It During Negotiations
When applying for a new role:
Review the posted salary range and research your market value.
Prepare to negotiate within or above the listed range.
Say: “Given your posted range and my X years of experience, I believe a salary near the top of the range is appropriate.”
3. Spot Red Flags in Job Listings
If a job posting lacks a salary range and the company has 15+ employees:
They may be violating the law.
You can file a complaint with the California Labor Commissioner.
Consider whether you want to work for a company that ignores wage transparency laws.
3. Spot Red Flags in Job Listings
If a job posting lacks a salary range and the company has 15+ employees:
They may be violating the law.
You can file a complaint with the California Labor Commissioner.
Consider whether you want to work for a company that ignores wage transparency laws.
4. Compare Pay Across the Market
Use posted salary ranges to:
Benchmark your pay with others in your field
Discover industries that offer better compensation
Track trends in wage growth and benefits
Why Pay Transparency Matters
Reduces Discrimination: By publishing salaries, it becomes easier to detect and correct wage disparities based on gender, race, or ethnicity.
Improves Fairness: Employees in similar roles should receive similar pay.
Promotes Accountability: Employers are encouraged to set structured, justified compensation standards.
Boosts Retention: Workers who feel fairly paid are more likely to stay.
Empowers Workers: With knowledge comes negotiating power.
What to Do If Your Employer Violates the Law
If your employer refuses to provide your pay range or fails to include salary info in job postings:
Document the violation (save postings, screenshots, or correspondence)
File a claim with the California Labor Commissioner (DLSE)
Consult an employment attorney to explore legal options
You may be entitled to compensation or court-ordered compliance.
Think You’re Being Underpaid or Misinformed? Let Us Help.
At H&A Law Office, PC, we stand up for employees facing wage violations, discrimination, and retaliation. If you suspect your employer isn’t following California’s pay transparency law, or if you’ve been punished for speaking up about wages, we want to hear from you.
Fill out our online form.
Call us today at (424) 322-2482 for a free, confidential consultation.
You don’t pay unless we win.
FAQs About California Pay Transparency Law
Does the law apply to remote jobs based in California?
Yes. If the position could be filled in California, even if remote, the law applies.
Can employers post extremely wide salary ranges?
They must post a “reasonable” range they actually expect to pay. Unreasonably broad ranges (e.g., $40,000 to $200,000) may violate the law.
Can I be fired for asking about my pay range?
No. The law explicitly prohibits retaliation against employees who request pay scale information.
What if I’m applying to a job and there’s no pay listed?
If the employer has 15+ workers and the job could be performed in California, the pay range must be included in the job posting.
Does the law include bonuses or benefits?
No. Only base pay (hourly wage or salary) must be disclosed. Bonuses, benefits, or equity compensation are not required.
6. Can I sue an employer for violating the law?
es. You can file a civil lawsuit for injunctive relief or other damages. Penalties can be enforced by the Labor Commissioner or through private legal action.
This post is intended for informational purposes only and does not constitute legal advice. Laws and regulations are subject to change, and their application can vary based on specific circumstances. For personalized legal assistance, please reach out to H&A Law Office, PC.
