If you’re a job seeker in California—or already employed—you now have more legal power to understand and question how much you or your coworkers are being paid. Thanks to California’s new pay transparency law, employers must be more upfront about compensation than ever before. And for those who don’t follow the rules? Legal consequences may follow.
At Malk Law Firm, we represent workers throughout California who are navigating wage issues, discrimination, and unfair labor practices. If you’re wondering what California’s pay transparency law means for you or your workplace, here’s what you need to know—and how to take action if your rights are violated.
What Is California’s Pay Transparency Law?
In January 2023, Senate Bill 1162 (SB 1162) took effect, making California one of the most progressive states in the country when it comes to wage transparency. The goal of the law is to help close wage gaps and reduce pay discrimination by giving workers clear access to information about what positions pay before and after they’re hired.
The law introduced three key requirements:
- Pay scale disclosure in job postings
- Employee access to pay scales for their current roles
- Annual pay data reporting by large employers to the state
Who Does the Law Apply To?
The law affects a broad range of employers and situations. Here’s how it breaks down:
- All California employers must provide current employees with the pay scale for their job upon request.
- Employers with 15 or more employees must include the pay scale in any job posting, whether the position is on-site, remote, or hybrid.
- Employers with 100 or more employees, or 100 or more workers hired through labor contractors, must file annual pay data reports with the California Civil Rights Department (CRD).
Even if a company is headquartered outside of California, the law applies if at least one employee is based in California or if the job could reasonably be performed in California.
What Must Be Included in a Job Posting?
For any covered employer (15+ employees), all job postings must include a pay scale—meaning the hourly wage or salary range the employer reasonably expects to pay.
The law does not set a strict limit on how wide the range can be. However, if a company tries to evade the law by posting unreasonably large or vague ranges (e.g., $20,000–$200,000), they could face scrutiny or enforcement action from the Labor Commissioner’s Office.
The pay scale must be accurate and defensible—based on the position’s duties, qualifications, and internal pay structures.
Can Employees Ask for Their Pay Range?
Yes. Under SB 1162, any employee in California can request the pay scale for their current position, and their employer must provide it—no matter how many people the business employs.
If you work in Los Angeles or anywhere else in California and you’re unsure whether you’re being fairly paid, this law allows you to compare your compensation to what your employer has outlined for the role.
Employees cannot be punished or retaliated against for making a request.
What About Pay Data Reporting?
Larger employers (with 100 or more employees) are required to submit detailed pay data reports to the California Civil Rights Department each year. These reports must include:
- Job categories and pay bands
- Total hours worked
- Median and mean hourly rates
- Demographic data (by race, ethnicity, sex)
- Information about workers hired through labor contractors
The reports help the state investigate wage discrimination and ensure companies are meeting equal pay obligations under California law.
What Are the Penalties for Non-Compliance?
Employers that violate California’s pay transparency law may face serious consequences:
- Fines of $100–$10,000 per violation for failing to include pay ranges in job postings
- Penalties for failing to maintain records or provide pay scale info to employees
- Legal exposure through private lawsuits filed by aggrieved employees or job applicants
- Enforcement actions by the California Labor Commissioner or Civil Rights Department
Notably, employers will not be fined for a first violation related to missing pay ranges if they correct it promptly. However, repeat offenses can be expensive.
What If You See a Job Posting Without a Pay Range?
If a California job posting is missing a pay range—or if you believe your employer isn’t complying with the law—you have options:
- File a complaint with the Labor Commissioner’s Office (online, by phone, or in person)
- Submit tips anonymously about non-compliant job ads
- File a retaliation complaint if you’ve been punished for asserting your rights
- Consult with a Los Angeles employment attorney to explore whether you have grounds for a lawsuit
You may also be able to pursue a claim under the Equal Pay Act or Fair Employment and Housing Act if you’ve been underpaid due to your gender, race, or another protected status.
Why This Law Matters for Workers in Los Angeles
In a city as large and diverse as Los Angeles, pay disparities are widespread, especially in industries like tech, healthcare, hospitality, and entertainment. SB 1162 empowers workers to:
- Hold employers accountable
- Push for pay equity
- Make informed decisions when applying for jobs
- Challenge secretive or discriminatory wage practices
At Malk Law Firm, we’ve seen firsthand how wage secrecy allows unfair compensation to continue unchecked. This law is a tool for transparency—and a starting point for real workplace fairness.
Get Legal Help If Your Rights Have Been Violated
If you believe your employer has violated California’s pay transparency laws—or if you’ve experienced wage discrimination—Malk Law Firm is here to help. Our Los Angeles-based team is dedicated to protecting workers’ rights, and we can help you take the next step.
Whether you’re dealing with a missing pay scale, unfair pay practices, or retaliation for speaking up, we can review your case and fight for the compensation you deserve.
