State laws / CA
California pay transparency law
What California employers must disclose in job postings, who's covered, and the penalty for non-compliance.
- Statute
- California SB 1162
- Requirement type
- In-posting disclosure
- Effective
- January 1, 2023
- Applies to
- Employers with 15+ employees
- Salary range in postings
- Required
- Benefits description
- Not required
- Penalty
- $100–$10,000 per violation
- Enforced by
- California Labor Commissioner
- Notes
- Posting penalties are $100–$10,000 per violation, at the Labor Commissioner's discretion. SB 642 (eff. Jan 1, 2026) redefined 'pay scale' as a good-faith estimate expected upon hire and broadened 'wages'. SB 464's mandatory up-to-$100/employee penalty applies to PAY DATA REPORTING (100+ employees, separate obligation — not modeled here), not postings.
California's SB 1162 covers more workers than any other pay transparency law in the country. Employers with 15 or more employees — counted company-wide, not just in California — must include a pay scale in every job posting, including postings syndicated through job boards and staffing agencies. The requirement has applied since January 1, 2023, and amendments effective January 1, 2026 (SB 642) tightened it: the pay scale is now defined as a good-faith estimate of the range the employer reasonably expects to pay upon hire, so a range spanning several seniority levels or a whole career path no longer qualifies.
Posting violations carry civil penalties of $100 to $10,000 per violation, set at the Labor Commissioner's discretion — and for a first posting violation, no penalty is assessed if the employer updates all postings to include the pay scale. A separate 2026 bill, SB 464, made penalties mandatory for California's pay data reporting obligation (the annual demographic report filed by employers with 100+ employees), which is often misreported as a posting penalty. It is not: posting fines remain discretionary.
California also gives applicants and current employees the right to request the pay scale for their role, and SB 642 extended the statute of limitations for pay-transparency claims to three years, with a lookback of up to six for continuing violations — so a stale non-compliant posting keeps its legal tail long after it comes down.
Frequently asked questions
Does California require salary ranges in job postings?
Yes. Under Labor Code § 432.3 (SB 1162), employers with 15 or more employees must include the pay scale — the salary or hourly range the employer reasonably expects to pay upon hire — in every job posting. The rule has applied since January 1, 2023 and covers postings published through third parties like job boards and recruiters.
Do remote jobs need a pay scale under California law?
Yes, if the role can be performed in California. A remote posting open to California residents is covered even if the company is headquartered elsewhere, once the employer has 15 or more employees company-wide.
Is California's pay transparency penalty mandatory?
Not for job postings. Posting violations carry discretionary civil penalties of $100 to $10,000 per violation, and a first violation can be cured by updating all postings. The mandatory penalty added by SB 464 (effective January 1, 2026) applies only to the separate pay data reporting obligation for employers with 100+ employees — up to $100 per employee for failing to file.
Related guides
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