A job posting without a salary range can create a compliance problem before an employer interviews anyone. California pay transparency law also gives applicants and employees access to pay information and limits questions about salary history. For California businesses, compliance requires more than adding numbers to an advertisement. This article explains which employers must publish pay scales, what information applicants and employees can request, and how to build a consistent process for recruiting, compensation, and recordkeeping.
What California pay transparency law requires
California Labor Code § 432.3 establishes several related obligations. Some apply regardless of employer size; the job-posting requirement applies to employers with 15 or more employees. Businesses should distinguish these rules rather than assume that a small workforce creates a complete exemption.
- Job postings: Employers with 15 or more employees must include the position’s pay scale in their job postings.
- Applicant requests: An employer must provide the pay scale for a position to an applicant upon reasonable request.
- Employee requests: An employer must provide an employee with the pay scale for that employee’s current position upon request.
- Salary history: Employers generally cannot seek an applicant’s salary history or use it to decide whether to offer employment or what compensation to offer.
- Records: Employers must maintain specified job-title and wage-rate records.
These requirements affect both hiring practices and existing employment relationships. A business reviewing its broader California regulatory compliance obligations should check job advertisements, recruiter instructions, application forms, and payroll records together.
Which job postings need a pay scale?
Under Labor Code § 432.3, an employer with 15 or more employees must include a pay scale in any job posting. When an employer uses a third party to advertise a position, the employer must supply the pay scale, and the third party must include it in the posting. Outsourcing recruitment does not remove the employer’s responsibility.
The California Labor Commissioner interprets the posting requirement to apply when a position may ever be filled in California, either in person or remotely. Its guidance also states that at least one employee must currently be located in California for the 15-employee posting requirement to apply. Multistate businesses should review their workforce and remote-work eligibility rather than count only employees at one California office.
The pay scale should appear within the posting itself. A statement such as “competitive compensation,” a link to a separate salary page, or an invitation to ask the recruiter does not replace the required disclosure. Review postings on the company website, recruiting platforms, and third-party advertisements for consistency.
How to disclose a meaningful salary range
Effective January 1, 2026, SB 642 amended Labor Code § 432.3 to define “pay scale” as a good-faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position upon hire. This current definition applies to pay scales provided to applicants and employees and included in job postings. The range should reflect the compensation reasonably expected for the specific position upon hire, rather than figures knowingly inflated or unrelated to the employer’s anticipated hiring compensation.
For example, if the approved hiring range for a California position is $80,000 to $95,000 annually, the posting should identify that range and make clear that it is annual salary. For an hourly position, state the hourly range. If an employer intends to pay a fixed amount, it can disclose that amount rather than invent a range.
- Confirm the approved hiring budget before publishing the posting.
- Clearly identify the required salary, hourly-wage, piece-rate, or commission range and its units.
- Bonuses, tips, equity, and other benefits may be described separately but are not required components of the posted pay scale.
- Review commission-based or piece-rate arrangements for the applicable disclosure requirements.
- Update active postings when the approved hiring range changes.
Descriptions of benefits, bonuses, tips, or equity cannot substitute for the required pay scale. California Labor Commissioner guidance requires the applicable piece-rate or commission range when compensation is based in whole or in part on piece rate or commission. Disclose a good-faith range reasonably expected to be paid upon hire. A broad range is not necessarily improper, but it must accurately reflect the anticipated hiring compensation for the position being advertised.
Responding to requests and avoiding salary-history questions
Applicants do not have to complete an interview before making a reasonable request for the position’s pay scale. Current employees can request the scale for their own position. Establish a clear response process so that recruiters and supervisors do not give conflicting answers or incorrectly refuse a request.
Labor Code § 432.3 generally prohibits employers, including their agents, from asking applicants about salary history, including compensation and benefits. Employers may ask about salary expectations instead. Application forms and interview scripts should reflect that distinction.
The statute permits consideration of salary history that an applicant voluntarily discloses without prompting, subject to applicable equal-pay rules. That exception is not permission to encourage disclosure indirectly. Under Labor Code § 1197.5, prior salary cannot justify a prohibited pay disparity. Publishing a salary range also does not establish that the employer’s compensation practices comply with equal-pay requirements.
Recordkeeping, enforcement, and a practical compliance review
Labor Code § 432.3 requires employers to maintain records of each employee’s job title and wage-rate history throughout employment and for three years afterward. The Labor Commissioner may inspect those records. Failure to keep them can create a rebuttable presumption in favor of an employee’s claim.
A person claiming to be aggrieved by a violation may file a written complaint with the Labor Commissioner within one year after the date the person learned of the violation. Violations may result in Labor Commissioner civil penalties of $100 to $10,000 per violation, determined from the totality of the circumstances. An aggrieved person may also bring a civil action for injunctive relief and other relief the court considers appropriate.
For a first violation of the posting requirements in subdivision (c), no penalty is assessed if the employer demonstrates that all job postings for open positions have been updated to include the required pay scale. This limited exception does not eliminate liability for other violations or other available relief.
A practical review should assign responsibility for approving ranges, auditing recruiter advertisements, responding to requests, and retaining records. Keep copies of postings and range approvals as a compliance practice. Separately, larger employers should assess California pay-data reporting requirements; publishing salary ranges does not replace required reporting.
Talk to a California business attorney
A free consultation can help you identify questions about job postings, pay-scale requests, or salary-history practices affecting your business or employment situation. Schedule a free consultation or call (424) 603-8888.
This article is attorney advertising and provides general information only. It is not legal advice and does not create an attorney–client relationship. The law changes, and this article reflects the law as of its publication date. Every situation is different — contact us to discuss how the law applies to your exact circumstances. See our full disclaimer.
