SB 1162: Impacts to California’s Pay Transparency Act and Implications for Employers

Beginning next year, the recently signed Senate Bill No. 1162 (SB 1162) will directly impact the California Pay Transparency Act, creating changes for employers throughout the state.

Effective Jan. 1, 2023, this new law will impact employers in the following areas:

  1. Employers with more than 15 employees will be required to post salary ranges on ALL job postings (although ranges do not need to include bonuses, equity, etc.)
  2. New pay data reporting requirements for California employers with 100+ employees will be implemented (regardless of if they are exempt from filing EEO-1 report)
  3. Maintaining records of titles, wage history, etc. will be expanded

Updated pay data reports are due starting May 10, 2023.

While there are certain details related to SB 1162 that have yet to be fully clarified, PBO Advisory Group stays on top of these updates to help our clients prepare for and adapt to these changes, utilizing our services to pivot and appropriately advise on these matters. We recognize that transparency is a good thing, but we also understand that it may result in internal ramifications as salary information must now be disclosed for new hires. Additionally, companies may likely need to make changes regarding how to attract and retain staff.

To help navigate the impacts of this law, PBO Advisory offers a variety of HR services, including:

  • Compensation benchmarking and planning
  • HRIS review for data collection, retention of records, and visibility into internal pay equity
  • Leadership coaching on culture impact and change management for staff
  • Talent acquisition strategies to remain competitive

For more information on SB 1162 and related laws, please contact Nicole Devine for more information.

Nicole Devine
Consulting Chief People Officer
858-622-1681 Ext. 287