Which employers are covered under SB 1162?

SB 1162 applies to California employers with 15 or more employees. It requires covered employers to disclose pay scales for positions in job postings and internal promotions.

How should employers track compliance with SB 1162?

Employers should maintain records of pay scales provided in job postings, internal listings, and employee communications. Regular audits and HR training help ensure consistent compliance.

What information must be disclosed to job candidates?

Employers must provide the pay scale for the position, including hourly or salary ranges. This applies to both external job postings and internal promotional opportunities.

What SB 1162 Means for Your Business

SB 1162 aims to reduce wage gaps based on gender, race, or other protected characteristics.

Key requirements include:

1. Pay Scale Disclosure in Job Postings (15+ Employees)

• Post base salary or hourly pay ranges for all roles, internal and external.

• Applies to company websites, job boards, and remote positions filled by California residents.

• Excludes bonuses, commissions, and benefits.

2. Pay Scale Disclosure to Current Employees (All Employers)

• Employees can request the pay range for their role.

• Employers must provide information promptly.

3. Annual Pay Data Reporting (100+ Employees)

• Report median and mean wages by race, ethnicity, and sex across job categories.

• File annually by the second Wednesday in May.

Compliance Tips for Small and Medium Businesses

• Audit Pay Practices: Ensure employees in similar roles are paid equitably.

• Set Clear Pay Ranges: Ranges should be reasonable, competitive, and defensible.

• Update Job Postings: Include salary ranges in all platforms.

• Train Your Team: HR and hiring managers should understand SB 1162 requirements.

• Maintain Records: Keep wage and job title history for three years after employment ends.

Why Compliance Matters

• Avoid penalties: Fines can reach $10,000 per job posting violation or $100+ per employee for missing pay data reports.

• Build trust: Transparency improves employee satisfaction and retention.

• Strengthen your brand: Fair pay practices attract top talent in a competitive market.

Quick FAQs

• Can pay ranges vary by location? Yes, geographic cost-of-living differences are allowed.

• Should benefits be included in pay scales? No, only base salary or hourly wages.

• What if employees discover pay disparities? Conduct audits and adjust if inequities aren’t justified.

Bottom Line:

SB 1162 compliance is more than a legal requirement—it’s an opportunity to foster a fair, transparent, and competitive workplace. Start by auditing pay practices, setting clear salary ranges, and updating job postings today.

Resources:

California Civil Rights Department Labor Commissioner’s Office

California Pay Transparency: Your Quick Guide to SB 1162 Compliance