Senate Bill 1162: Big Impact on Employers with California Employees

Senate Bill 1162:  Big Impact on Employers with California Employees

In September 2022, California enacted Senate Bill 1162, which greatly impacts employers with at least one employee in California. (See previous EP Alert here.)  Significantly, this law expands an existing requirement for employers to report annual pay data about California employees to the California Civil Rights Department (formerly the California Department of Fair Employment and Housing) by no later than May 10, 2023. While the deadline is still a few months away, it is important to begin preparing for this now, as it will take weeks to study and understand the requirements and to gather and compile the necessary information. On January 19, 2023, the State released FAQs about the pay data reporting requirements. 

Separately, effective January 1, 2023, some employers are required to provide current employees and job applicants in California with information about the pay range for their job (i.e., either their current job or a job to which they are applying). On December 27, 2022, the State issued FAQs about the new pay rate disclosure requirement.