Litigation

Cal. Litig. 2023, Volume 35, Issue 3

CALIFORNIA’S COMMITMENT TO WAGE TRANSPARENCY COMES AT A COST TO EMPLOYERS

Written by Jasmine M. Samuels*

CALIFORNIA SEEKS TO PIERCE THE VEIL OF WAGE SECRECY WITH SENATE BILL 1162

With the commitment to wage transparency sweeping the nation, California joins the ranks of jurisdictions such as Colorado, Washington, New York City, as well as other states and municipalities, with the passing of wage transparency initiative, Senate Bill (SB) 1162. With the implementation of SB 1162, California seeks to combat inequities in compensation among women and minority groups in the workplace.

On September 27, 2022, Governor Gavin Newsom signed SB 1162 into law. The bill was sponsored by Senator Monique Limón and the California Legislative Women’s Caucus. Effective January 1, 2023, SB 1162 amends Labor Code section 432.3 and Government Code section 12999 to expand pay data reporting and increase pay scale transparency. (Stats. 2022, ch. 559, §§ 1 & 2.)

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