California Guide · Updated 2026
California Pay Transparency & Equal Pay Rules
California has steadily expanded what employers must disclose about pay — and what they can ask about it. Getting postings and pay-setting right keeps you out of penalty territory and supports genuine pay equity.
Pay scale in job postings (SB 1162 / Labor Code §432.3)
- Employers with 15 or more employees must include the pay scale (salary or hourly range) in any job posting — including postings made through third parties.
- All employers must give the pay scale for a position to an applicant on request, and to a current employee for their own current role.
Salary-history ban (Labor Code §432.3)
Employers may not ask about an applicant's salary history or rely on it in deciding whether to make an offer or what to pay. If an applicant voluntarily shares it, you may consider it — but you cannot solicit it.
Equal Pay Act (Labor Code §1197.5)
Employees must receive equal pay for substantially similar work regardless of sex, race, or ethnicity. Any pay difference has to be justified by a bona fide factor — seniority, merit, a system measuring production, or another legitimate business factor. Prior salary alone cannot justify a disparity.
Pay-data reporting & records
- Employers with 100+ employees must file an annual pay-data report with the Civil Rights Department (CRD).
- Keep records of each employee's job title and wage-rate history for the duration of employment plus three years.
Need help with this?
Our HR Assistant gives cited California HR answers in seconds, backed by 45+ years of hands-on HR experience.