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SB 1162 – Enacts Pay Transparency Requirements For Hiring Employers; Revises Pay Data Reporting Requirements For Private Employers
Senate Bill 1162 (SB 116) imposes new obligations on employers, including sharing pay scale information in job postings and with current employees and revising private employers’ pay data reporting requirements.
SB 1162 amends Labor Code Section 432.3 to require all public and private employers with 15 or more employees, to include a position’s pay scale in any job posting the employer posts directly or through a third party. “Pay scale” means the salary or hourly wage range that the employer reasonably expects to pay for the position.
Current law requires an employer, upon reasonable request, to provide a position’s pay scale to an applicant applying for employment. SB 1162 expands this to also require an employer to provide to an employee, on request, the pay scale for their current position.
SB 1162 further requires employers to maintain records of the job title and wage rate history for each employee for the entire duration of the employee’s employment plus three years after the employee’s employment ends. The records must be open to inspection by the Labor Commissioner. If an employer fails to keep these records and an employee brings a claim that the employer violated Labor Code Section 432.3, the employer’s failure creates a rebuttable presumption in favor of the employee’s claim.
Any claim filed by an employee must be filed with the Labor Commissioner within one year after the date the applicant or employee learned of the violation. The Labor Commissioner has the authority to investigate the claims. If the Labor Commissioner finds that the employer violated Labor Code Section 432.3, the Labor Commissioner may order the employer to pay a civil penalty of between $100 and $10,000 per violation. Employees may also bring a civil action for injunctive relief or other relief, as the court deems appropriate.
In addition, SB 1162 modifies existing pay data reporting obligations for private employers that are required to file an annual Employer Information Report (EEO-1) pursuant to federal law. This provision of the bill does not apply to public agencies, which are covered by different federal reporting requirements.
(SB 1162 amends Section 12999 of the Government Code, and amends Section 432.3 of the Labor Code.)