California Pay Transparency Law (SB 1162): What Employees Need to Know (2026)

Quick Answer: California's pay transparency law (SB 1162) requires most employers to include salary ranges in job postings and gives all employees the right to request the pay scale for their current position. Employers with 100 or more employees must also submit annual pay data reports to the state. Violations can result in penalties of $100 to $10,000 per violation. If your employer refuses to share salary information you are entitled to, you can file a complaint with the California Labor Commissioner.

SB 1162 took effect on January 1, 2023, and it remains one of the strongest pay transparency laws in the country. Understanding what employers are required to disclose—and what you are entitled to request—can help you negotiate better compensation, identify pay disparities, and take action if your rights are violated.

This guide covers who must comply with California's pay transparency law, what information must be disclosed, your rights as an employee, how penalties work, and how to file a complaint. For a broader overview of how California regulates compensation, see the California Wages and Hours hub.

What Is SB 1162?

Senate Bill 1162, signed by Governor Gavin Newsom on September 27, 2022, significantly expanded California's existing pay transparency requirements under Labor Code Section 432.3. The law has two main components:

1. Pay scale disclosures in job postings for employers with 15 or more employees
2. Annual pay data reporting to the California Civil Rights Department (CRD) for employers with 100 or more employees

Before SB 1162, California law only required employers to share pay scale information with applicants who specifically asked for it. The new law goes further by requiring that pay range information appear directly in job postings—removing the burden from workers to know they can ask.

The law addresses a well-documented problem: pay gaps by gender, race, and ethnicity persist in large part because workers lack access to information about what their colleagues earn. When pay ranges are hidden, workers cannot effectively negotiate, and employers face less accountability for discriminatory pay practices.

Who Must Comply With California's Pay Transparency Law?

The requirements under SB 1162 vary depending on the size of your employer.

Employers With 15 or More Employees

If your employer has 15 or more employees, they must include the pay scale for any open position in every job posting. This requirement applies regardless of where the posting appears—job boards, the company website, third-party recruiting platforms, or printed listings.

The law defines pay scale as the salary or hourly wage range the employer reasonably expects to pay for the position. Employers cannot post a range so broad that it fails to provide meaningful information. A posting that lists "$15 to $200,000 per hour" for a data entry role would not satisfy the law's intent.

The 15-employee threshold includes all employees, not just those based in California. So if a company employs 12 workers in Texas and 4 in California, they meet the threshold and must comply.

All Employers (Regardless of Size)

Even employers with fewer than 15 employees must comply with two requirements:

• Applicants: You have the right to request the pay scale for any position you have applied for. The employer must provide it upon request.
• Current employees: You have the right to request the pay scale for your current position at any time. This is one of the most significant rights under the law—you do not need to be applying for a new job to access this information.

Third-Party Job Postings

If an employer uses a recruiting agency or staffing firm to post positions, the employer is still responsible for ensuring pay scale information is included. Employers must provide the pay range to third-party recruiters, who are then required to include it in any public listing.

What Must Be Included in Job Postings?

Under Labor Code Section 432.3, a qualifying job posting must include the salary or hourly wage range the employer reasonably expects to pay for the role. For positions that pay commission or piece rate, the posting must include the commission structure or piece rate scale.

The law does not require employers to disclose:

• The specific salary of any current employee
• Bonus structures (though many employers voluntarily include this)
• Equity or stock compensation details
• Benefits information

The pay scale must reflect what the employer genuinely expects to pay. Listing a range far broader than what is realistically on the table is not compliant with the law's purpose, though enforcement on this specific point can be complex.

If you are applying for a remote position at a company with 15 or more employees and the posting does not include a pay range, the employer may be in violation—even if the company is headquartered outside California.

Your Rights as a Current Employee

One of the most practical rights under SB 1162 is your ability to request pay scale information for your own position at any time. Here is how to exercise that right.

How to Request Your Pay Scale

1. Submit a written request to your HR department or direct manager. A written request creates a record, which matters if you later need to file a complaint.
2. Be specific about the position. State that you are requesting the pay scale for your current role pursuant to California Labor Code Section 432.3.
3. Allow reasonable time for a response. The law does not specify an exact timeframe, but prompt compliance is expected. Most employers respond within one to two weeks.
4. Keep a copy of your request and any response you receive.

Your employer cannot retaliate against you for making this request. If you face demotion, termination, a reduction in hours, or any other negative employment action after requesting pay scale information, that may constitute workplace retaliation, which carries its own legal protections under California law.

What the Information Tells You

Knowing your position's pay scale can help you in several ways:

• Negotiating a raise: If you are paid below the midpoint of the range, you have grounds to request a pay increase.
• Identifying pay disparities: If you suspect you are paid less than colleagues in similar roles due to your gender, race, or another protected characteristic, the pay scale is a starting point for that analysis. See our guide on gender discrimination in California for more on pay equity claims.
• Evaluating a job offer: If you have been offered a position internally, knowing the full range helps you negotiate from an informed position.

Pay Data Reporting Requirements

If you work for a company with 100 or more employees, your employer must submit an annual pay data report to the California Civil Rights Department (CRD). This requirement is separate from the job posting rules and applies to private-sector employers.

What Must Be Reported

The annual pay data report must include the number of employees by:

• Race and ethnicity (using EEOC categories)
• Sex (male, female, non-binary)
• Job category (10 standard EEO-1 job categories)
• Pay band (12 pay bands based on federal EEO-1 methodology)
• Median and mean hourly rates for each combination of race, ethnicity, sex, and job category

Employers with 100 or more workers hired through labor contractors must also file a separate labor contractor employee report listing pay data for those workers by their actual employer of record.

Reporting Deadline

Pay data reports must be submitted by the second Wednesday of May each year. For example, the 2025 pay data report was due in May 2026. Employers who fail to file face court-ordered compliance and civil penalties.

Why This Matters to You

Pay data reporting creates accountability at the employer level. The CRD uses aggregate data to identify industries and companies with significant pay gaps across protected groups. While individual employee data is confidential, the reports can trigger investigations and shape enforcement priorities.

If you suspect your employer has a systemic pay disparity problem, the CRD's published pay data (available for public employers) can provide context for a discrimination claim.

Employer Recordkeeping Requirements

Under SB 1162, employers must maintain records of each employee's job title and wage rate history for the entire duration of their employment, plus three years after employment ends. The California Labor Commissioner can inspect these records during an investigation.

This recordkeeping requirement exists so the Labor Commissioner can assess pay practices over time, not just at a single snapshot. If your employer cannot produce these records during an investigation, that failure itself can be used as evidence in your favor.

Penalties for Violations

Employers who violate California's pay transparency law face civil penalties enforced through the Labor Commissioner's Office (for pay scale disclosures) and the CRD (for pay data reporting).

Pay Scale Disclosure Violations

Each job posting that lacks a required pay range is a separate violation. If an employer posts the same position on five platforms without a pay range, that may constitute five separate violations. Similarly, refusing a current employee's request for their pay scale is its own violation.

Pay Data Reporting Violations

Employers who fail to file their annual pay data report on time face a penalty of $100 per employee for the first failure and $200 per employee for each subsequent failure.

The CRD can seek court orders compelling compliance, which means an employer who ignores the reporting obligation may face both the per-employee penalty and a court mandate to file.

How Pay Transparency Connects to Pay Equity Claims

California's pay transparency law works alongside the California Equal Pay Act (Labor Code Section 1197.5), which prohibits paying employees less than employees of a different sex, race, or ethnicity for substantially similar work. The two laws are complementary.

Pay scale access can be the first step in building a pay equity claim. If you review your position's pay range and discover you are consistently paid below similarly situated colleagues of a different demographic group, you may have grounds for an equal pay claim under Labor Code Section 1197.5.

Pay equity claims are complex and require evidence comparing job duties, experience, and pay. Factors like seniority, merit, production systems, or bona fide business reasons can justify pay differences—but only if those factors are applied consistently and are not themselves discriminatory.

Understanding whether your role is classified as exempt or nonexempt also matters here, since pay structures differ significantly by classification. Our guide on exempt vs. nonexempt employees in California explains how classification affects your rights.

California's minimum wage sets the floor for what nonexempt employees must be paid. For current minimum wage rates, see our overview of California minimum wage laws.

How to File a Complaint

If your employer violates SB 1162, you have two enforcement pathways depending on the type of violation.

Complaints About Pay Scale Disclosures (Labor Commissioner)

If your employer refuses to include pay ranges in job postings or denies your request for your current position's pay scale, file a complaint with the California Labor Commissioner's Office (Division of Labor Standards Enforcement):

1. Online: Submit a complaint through the California Department of Industrial Relations (DIR) website at dir.ca.gov
2. In person: Visit your nearest Labor Commissioner office
3. By mail: Submit a written complaint to your regional Labor Commissioner office

Your complaint should include your name and contact information, your employer's name and address, the specific violation (e.g., refused to provide pay scale upon request), and the date the violation occurred. Attach copies of any written requests you submitted and any response you received.

Complaints About Pay Data Reporting (Civil Rights Department)

If you believe your employer is failing to submit required pay data reports, file a complaint with the California Civil Rights Department (CRD):

1. Online: Through the CRD's online complaint portal at calcivilrights.ca.gov
2. By phone: Call the CRD intake line

The CRD can also investigate pay data reporting failures on its own initiative without a complaint from an individual employee.

Documentation to Gather Before Filing

• Copies of any job postings (screenshots with URLs) that lack pay ranges
• Written records of any pay scale request you submitted
• Any written or verbal denial from your employer
• Your job title and employment start date
• Pay stubs or offer letters showing your current compensation

Frequently Asked Questions

Does SB 1162 apply to remote jobs posted by out-of-state companies?

Yes, if the position can be filled by a California resident, the job posting must include a pay range under California law. Many national employers have updated their job postings to include salary ranges for all positions, regardless of location, to ensure compliance.

Can my employer give me a pay range so broad it is meaningless?

The law requires that the pay scale reflect what the employer "reasonably expects to pay." An extremely broad range that provides no useful information may not satisfy the law's requirements, but enforcement on this specific issue depends on the Labor Commissioner's interpretation in each case.

What if I am a contract or temp worker?

If you are placed through a staffing agency, your employer of record may be the agency rather than the company where you work. However, employers with 100 or more contract workers must still report pay data for those workers under the labor contractor reporting requirement.

Does the law apply to internal job postings?

Yes. The law covers "all job postings," which includes internal-only postings for open positions. If your company posts a promotion opportunity internally without listing a pay range, that may violate Labor Code Section 432.3.

Can my employer retaliate against me for requesting pay scale information?

No. California law prohibits retaliation for exercising rights under the Labor Code. If you experience adverse employment action after requesting pay scale information, document everything and contact the Labor Commissioner immediately.

Related Topics

• California Wages and Hours Laws: Complete Guide
• Gender Discrimination in California
• Exempt vs. Nonexempt Employees in California
• California Minimum Wage Laws
• Workplace Retaliation in California

Need help understanding your pay rights? If you believe your employer is violating California's pay transparency law or underpaying you compared to coworkers, speaking with an employment attorney can help you understand your options. Get a free, confidential case review from an employment law expert.

Disclaimer: The information on this page is for general informational purposes only and does not constitute legal advice. Employment laws vary by state and change frequently. For advice specific to your situation, consult a licensed employment attorney in your state. Employment Law Aid is not a law firm and does not provide legal representation.