The Labor Code requires employers to provide applicants, upon request, a pay scale of range of wages the employer reasonably expects to pay for a position and to include that information in job postings if the employer employs more than 15 employees. The Labor Code also prohibits employers from paying employees at rates less than those paid to employees of the opposite sex or of another race or ethnicity for substantially similar work, except under specific circumstances.
Effective January 1, 2026, SB 642 updates the definition of “pay scale” to mean “a good-faith estimate of the expected salary or hourly wage range that an employer reasonably expects to pay for a position upon hire.” Employers must continue to include the pay scale in job postings.
SB 642 also replaces the phrase “opposite sex” with “another sex,” clarifying that the law applies across all gender comparisons.
SB 642 extends the statute of limitations for filing a civil action for alleged violations from two to three years after the last date the cause of action occurs, allowing employees to seek relief for the entire period of a violation, up to six years. SB 642 specifies that a cause of action occurs under the following circumstances: (1) when an alleged unlawful compensation decision or practice is adopted; (2) when an individual becomes subject to the decision or practice; or (3) when an individual is affected by the application of the decision or practice.
(SB 642 amends Sections 432.3 and 1197.5 of the Labor Code.)