Late last month, the California legislature approved SB 1162 which, with the governor’s signature, will impose new disclosure obligations on many California employers.
The measure has two major sections. The rationale for the measure was that greater transparency about pay will reduce pay gaps by race, ethnicity, and sex, even those gaps not resulting from intentional discrimination.No later than the second Wednesday of May beginning in 2023, private employers with 100 or more employees, whether the employees are hired directly or through a labor contractor, will have to submit a pay data report to the California Civil Rights Department .
The department may ask a court to impose civil penalties on any employer that fails to submit the required information. The new measure further will require employers with 15 or more employees to include a job’s pay scale in any job posting. The pay scale also must be included in any job announcement or posting by any third party, such as an online jobs platform.
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