Pay Transparency Laws in California
California has pay transparency requirements
California requires employers with 15 or more employees to include pay scale (salary or hourly wage range) in all job postings, including postings by third parties. Employers of any size must provide the pay scale to an applicant upon reasonable request and to current employees for the position they hold. California also bans employers from asking about or relying on salary history.
Key details
| Pay transparency law? | Yes |
|---|---|
| Salary range in job postings? | Yes |
| Salary range on request? | Yes |
| Salary history ban? | Yes |
| Employer size threshold | 15+ employees — 15+ employees for posting requirement. Any size for upon-request disclosure and salary history ban. |
| Effective date | January 1, 2023 |
| Penalties | Fines of $100-$10,000 per violation. Employees may also file civil actions for injunctive relief and other remedies. |
| Statute | Cal. Labor Code SS 432.3, 1197.5(k) (SB 1162) |
Pay Transparency Laws in California: what you need to know
California has enacted a pay transparency law that affects how employers handle salary information. California requires employers with 15 or more employees to include pay scale (salary or hourly wage range) in all job postings, including postings by third parties. Employers of any size must provide the pay scale to an applicant upon reasonable request and to current employees for the position they hold. California also bans employers from asking about or relying on salary history. Pay transparency laws are one of the fastest-growing areas of employment regulation in the country, and California is among the states leading this trend.
California requires employers to include salary ranges in job postings. 15+ employees for posting requirement. Any size for upon-request disclosure and salary history ban. This means that when you apply for a job in California, you should be able to see the pay range before you invest time in the application process. This requirement applies to employers with 15 or more employees.
In California, employers must provide salary range information upon request,. This means you can ask a prospective employer for the salary range at any point during the hiring process.
California also prohibits employers from asking about your salary history during the hiring process. This is an important protection because relying on salary history can perpetuate wage gaps, particularly for women and people of color who may have been underpaid in previous positions. Employers in California must base compensation on the value of the role and your qualifications, not on what you earned before.
Enforcement of California's pay transparency law includes penalties for non-compliance. Fines of $100-$10,000 per violation. Employees may also file civil actions for injunctive relief and other remedies. These penalties give the law teeth and create an incentive for employers to comply proactively rather than waiting for a complaint.
For California workers, understanding pay transparency laws (or the lack thereof) is important for salary negotiations. Knowing the salary range for a position gives you concrete information to negotiate from. Knowledge of the market rate for your role and experience level is one of the most powerful tools you have in any salary conversation.
More California workplace laws
Check other workplace law topics for California:
Frequently asked questions about pay transparency laws in California
Yes. California requires employers with 15 or more employees to include salary ranges in job postings.
No. California has a salary history ban that prohibits employers from asking about your previous compensation during the hiring process.
Yes. California requires employers to provide salary range information upon request.
Fines of $100-$10,000 per violation. Employees may also file civil actions for injunctive relief and other remedies.
This depends on the specific provisions of California law. Some states require transparency for any job that can be performed in the state, while others apply only to positions physically located there. Check the specific statutory language or consult an attorney.