California Senate Bill 1162 (SB 1162) is one of the most comprehensive pay transparency laws in the United States. Signed by Governor Newsom and effective January 1, 2023, it expanded California's existing pay equity requirements to mandate salary disclosure in all public job postings and imposes significant reporting obligations on large employers.
Who does SB 1162 apply to?
SB 1162 creates two distinct tiers of obligation:
- Employers with 15 or more employees anywhere (not just in California): must include the pay scale — meaning the salary or hourly wage range — in all job postings, including those for remote roles that could be performed by a California resident.
- Employers with 100 or more employees who are required to file EEO-1 reports federally: must also submit annual pay data reports to the California Civil Rights Department (CRD).
- Third-party job platforms (e.g. LinkedIn, Indeed) that post on behalf of employers with 15+ employees must also include the pay scale.
What must job postings include?
- The pay scale for the position — a salary or hourly range the employer reasonably expects to pay. "Competitive salary" or "DOE" is not compliant.
- Pay scale must be included in the posting itself, not just available upon request.
- For positions paid solely on commission, the commission structure or rate must be disclosed.
Employee and applicant rights
SB 1162 also grants rights beyond job postings:
- Applicants can request the pay scale for any position they apply for.
- Current employees can request the pay scale for their own position at any time.
- Employers must provide this information verbally, in writing, or by posting — but must respond.
Pay data reporting requirement (100+ employees)
Employers with 100 or more employees covered by federal EEO-1 reporting must submit annual pay data reports to the California CRD by the second Wednesday of May each year. Reports must include:
- Number of employees by race, ethnicity, and sex in each job category and pay band
- Mean and median hourly rate for each combination of job category, race, ethnicity, and sex
Failure to file: civil penalty of up to $100 per employee for the first year, $200 per employee for subsequent years.
California city and county variations
Some California cities had pay transparency measures before SB 1162, and others have additional employment ordinances worth knowing:
- San Francisco Pay Equity Ordinance — additional pay analysis requirements for SF employers with 50+ employees
- Los Angeles Pay Transparency — SB 1162 applies city-wide; LA also has specific contractor and gig-economy rules
Employer checklist
- ✓ Include pay scale (min and max) in every job posting, regardless of where it's posted
- ✓ Train recruiters to provide pay scale on request to applicants and employees
- ✓ If 100+ employees: file pay data report with CRD by the second Wednesday of May
- ✓ Document pay scale determination for each role
- ✓ Review third-party job board postings to ensure pay scale is included
How RoleComply helps
RoleComply scans every job posting on your careers page daily against SB 1162 requirements. If a salary range is missing, ambiguous ("competitive salary"), or falls outside the documented pay scale, RoleComply flags it before a regulator does — and suggests the specific fix needed.
Frequently asked questions
Does SB 1162 apply if I have no California employees? Yes, if the role can be performed remotely by a California resident, the law applies to that posting regardless of where your company is headquartered.
Can I post different ranges for California vs. other states? Technically yes, but it is administratively complex and can signal pay inequity. Most employers choose one inclusive range that satisfies the strictest requirement.
What counts as a pay scale? The salary or hourly wage range the employer "reasonably expects to pay." It must be a genuine range — not $1 to $1,000,000.
