California Update To Job Postings

In 2023, California introduced new pay transparency requirements as part of the State’s Equal Pay Act.  This required employers of 15 or more employees in California to post a “pay scale” in all job postings for open positions.  Effective January 1, 2026, California Senate Bill 642 (SB 642) amends existing pay transparency laws to clarify the definition of “pay scale.” More specifically, SB 642 redefines “pay scale” to mean a “good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire.”  

SB 642 also extends the statute of limitations for violations from two to three years after the last date a cause of action occurs and introduces a new six-year lookback period for relief. California employers should consult their employment counsel to ensure that all covered job postings include a good faith estimate of the pay scale under the amended law.