In short: Under California’s pay transparency law, Labor Code section 432.3, employers with 15 or more employees must include a pay scale in every job posting, and employers must give a pay scale to current employees who ask for the one for their position. Employers also cannot ask about your pay history. Violations can be reported to the California Labor Commissioner.
If you work or apply for jobs anywhere in Los Angeles or other California counties, this law probably touches your next job search or your next raise conversation. Here is what the law requires, what it does not, and what you can do if an employer ignores it.
What Is the California Pay Transparency Law?
It is a set of rules, first strengthened by Senate Bill 1162 and found mainly in Labor Code section 432.3, that requires employers to be upfront about pay.
SB 1162 took effect on January 1, 2023. It built on California’s earlier ban on asking about salary history and added three main duties: post pay ranges, share pay scales on request, and keep pay records. A newer law, SB 642, tightened the wording starting in 2026, and we cover that below.
Key terms, defined once:
- Pay scale: a good-faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position when the person is hired.
- Applicant: someone seeking a job with the employer who does not already work there in any role.
- Salary history: what you earned or were offered in the past, including benefits.
What Must Employers Disclose in Job Postings?
Employers with 15 or more employees must put the pay scale in any job posting. According to the Labor Commissioner’s Office, at least one of those employees must be in California, and the rule applies if the job could ever be filled in California, including remotely.
Some details that trip employers up:
- The range must be in the posting itself. A link or QR code to a separate page does not count.
- Bonuses, tips, and benefits do not have to be included in the range.
- For piece-rate and commission jobs, the range does have to be stated.
- The range must be a good-faith estimate, not a placeholder like “$1 to $1,000,000.”
If a company uses a recruiter or job board, it must give the pay scale to that third party, and the posting must carry it. A third-party site that never got the information from the employer is still a problem for the employer.
What Can Current Employees and Applicants Ask For?
You can ask for the pay scale for the position you hold, and applicants can ask for the pay scale for the job they are applying for. The statute calls for a “reasonable request,” so a simple email works.
Imagine a warehouse lead who learns that new hires in her role are being posted at a higher range than her own pay. She can ask HR in writing for the pay scale for her position. The employer should provide it. If she is then retaliated against for asking, that can be a separate violation. See our guide to workplace retaliation in California.
Related protections you may not know about:
| Employer may NOT | Employer MAY |
|---|---|
| Ask about your salary or benefits history | Ask about your salary expectations |
| Use salary history to decide whether to hire you or how much to offer | Consider salary history you volunteered without being asked, when setting pay |
| Rely on prior salary to justify a pay gap based on sex, race, or ethnicity | Pay differently for legitimate, job-related reasons |
What Records Must Employers Keep?
Employers must keep each employee’s job title and wage rate history for the length of employment plus three years. This record is what lets a worker or the state check pay over time.
If an employer cannot produce those records, the law gives the employee the benefit of a rebuttable presumption. In plain English, a judge or the Labor Commissioner may presume the employee’s version of events is true unless the employer proves otherwise.
How Does Pay Transparency Connect to Equal Pay?
Pay transparency shows you the range, and equal pay law protects you from being paid less for the wrong reasons. The Equal Pay Act (Labor Code section 1197.5) applies to employers of any size and bars paying less for substantially similar work based on sex, race, or ethnicity. No showing of intent is required.
Here is a worked example. Imagine two analysts on the same team doing substantially similar work. One earns $78,000 and the other earns $90,000, and the employer’s only explanation is “that is what they asked for.” Prior salary alone cannot justify a gap that tracks sex, race, or ethnicity. The employer would need to prove a legitimate, job-related factor, such as seniority, merit, or education and experience that actually relate to the job.
Pay-scale postings make gaps like this easier to spot early. Our overview of the gender wage gap and the California Equal Pay Act goes deeper, and pay disparities can also raise sex and gender discrimination issues.
Larger employers also have a separate duty. Private employers with 100 or more employees must file annual pay data reports with the Civil Rights Department.
How Is the Law Enforced, and What Are the Penalties?
The Labor Commissioner investigates complaints and can order employers to pay civil penalties of $100 to $10,000 per violation, and you can also go to court. Here is how it works:
- Who can file: any person aggrieved by a violation, which includes applicants and employees.
- Where: a “Pay Transparency Complaint” filed with the Labor Commissioner, as explained in the DLSE filing instructions.
- Deadline: within one year of when you learned of the violation.
- Penalties: the statute allows a civil penalty of $100 to $10,000 per violation, based on the totality of the circumstances. For a first violation of the posting rule, there is no penalty if the employer shows that all open job postings have been corrected.
- Court option: you may also sue for injunctive relief and other appropriate relief.
Two honest caveats. First, the Labor Commissioner explains that civil penalties go to the state, not to the person who complains. Second, a complainant is treated as a witness, so you may not get regular updates on the investigation. If you want help recovering unpaid wages or addressing retaliation, those claims run through different channels. Our wage and hour and labor law violations pages explain the options.
Equal Pay Act claims have their own remedies: unpaid wages, interest, and an equal amount as liquidated damages, plus attorney’s fees and costs in court.
What Changed in 2025–2026?
SB 642, signed in October 2025 and effective January 1, 2026, clarified the pay scale definition and expanded the Equal Pay Act. Here is the quotable summary:
- Pay scale wording: a “good faith estimate” of the range the employer reasonably expects to pay “upon hire.”
- Wages defined broadly (Equal Pay Act): all forms of pay, including bonuses, stock, and benefits, when comparing pay.
- “Another sex”: the Equal Pay Act now compares employees of another sex, which covers nonbinary workers.
- Longer deadline: a three-year filing period, with recovery available for up to six years of pay.
These details are in the text of SB 642. Rules for older violations can differ, so it is smart to ask an attorney about your dates.
What Should You Do If You Think an Employer Is Violating the Law?
Take these steps in order, and keep copies of everything:
- Save the posting. Take a screenshot with the date, the job title, and the website or recruiter.
- Ask in writing. Email HR for the pay scale for your position or the one you applied for.
- Write down what happened. Note who said what, when, and any pay differences you learned about.
- Do not delay. The one-year complaint deadline runs from when you learned of the problem.
- Avoid retaliation traps. Talking about wages is generally protected. If you are demoted, written up, or fired after raising pay, see our page on wrongful termination.
- Get advice. Our California labor laws guide and employment law FAQs are good starting points.
Common mistakes we see: waiting until memories fade, deleting screenshots, and assuming a “pay range” in a link counts as compliance.
Frequently Asked Questions
Does California’s pay transparency law apply to small employers? The job-posting requirement applies to employers with 15 or more employees. Smaller employers must still avoid asking about salary history and, on reasonable request, provide a pay scale to applicants.
Does the pay scale have to include bonuses or benefits? No. The pay scale is a good-faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position. Bonuses, tips, and benefits do not have to be included, but piece-rate and commission ranges do.
Can I ask my current employer what my position pays? Yes. On request, an employer must give a current employee the pay scale for the position they hold. A written request makes it easier to prove later.
Can an employer ask how much I made at my last job? No. Employers cannot seek an applicant’s salary history, and they cannot use it to decide whether to hire you or how much to offer. You may volunteer it, and your expected salary is fair game.
How do I file a pay transparency complaint in California? File a Pay Transparency Complaint with the Labor Commissioner within one year of learning about the violation. You can also bring a court action for injunctive relief and other appropriate relief.
What are the penalties for violating California’s pay transparency law? The Labor Commissioner can order civil penalties of $100 to $10,000 per violation. For a first violation of the posting rule, there is no penalty if the employer shows all open postings were corrected.
Questions About Pay Transparency or Unequal Pay? Talk to Mesriani Law Group
Pay laws are only useful if someone enforces them. The employment attorneys at Mesriani Law Group help workers across Los Angeles and other California counties understand their rights and decide on next steps. For a no-pressure conversation, visit our free legal advice page or contact us online.
Call (866) 500-7070 for a free consultation.
Sources
- California Department of Industrial Relations, Division of Labor Standards Enforcement: California Equal Pay Act and Pay Transparency
- California Labor Commissioner’s Office: Instructions and Guide for Filing a Pay Transparency Complaint
- California Legislative Information: Labor Code section 432.3
- California Legislative Information: SB 1162 (2021-2022)
- California Legislative Information: SB 642 (2025-2026), Employment: payment of wages
- California Civil Rights Department: Pay Data Reporting
This blog post is general information, not legal advice, and reading it does not create an attorney-client relationship. Laws change and every situation is different. Past results do not guarantee or predict a similar outcome in any future case.
