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Pay Equity Takes Center Stage in 2023: How California's SB 1162 Increases Pay Transparency

Discovering what your colleagues earn can feel like uncovering a hidden treasure, a secret map to understanding your true worth in the workplace. Designed to shatter the cloak of opacity surrounding pay disparities, California’s Senate Bill (SB) 1162 stands as a powerful shield against discrimination and a beacon of hope for equitable compensation. As of January 1, 2023, pay data reporting requirements and pay transparency laws have been expanded by SB 1162.

What does SB 1162 do?

Employers with 100 or more employees are obligated to provide detailed pay data for all employees, including information on race, ethnicity, and sex as well as pay rates to the California Department of Civil Rights. By doing so, the law will increase transparency and accountability in the workplace. As a result, workplace disparities will come to light more easily and lawyers like us will be able to more clearly see when discrimination is taking place and fight for justice.

Employers with 15 or more employees must also include a pay range for all job postings.

What happens if my employer doesn’t comply?

Non-compliance with these new requirements can result in civil penalties for employers. Any complaints alleging violations of these new laws will be investigated by the Labor Commissioner, and if an employer is found to have violated the law, they may be ordered to pay civil penalties.

In addition, employees who have been subjected to any violations may bring a civil lawsuit against their employer for relief.

How does SB 1162 promote equal pay for all employees?

SB 1162 reaffirms California's commitment to protecting employees from discriminatory pay practices. Through increased transparency and reporting requirements, the law seeks to promote equal pay for all employees and eliminate any disparities that may exist between different groups of workers.

As an employee, take note of these new requirements and be sure to stay up to date on your legal rights. If you think your rights have been violated by your employer, feel free to contact our office for a confidential review of your case.

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The information provided in this blog post does not, and is not intended to, constitute legal advice. All content and information in this blog post are for general informational purposes only. Reading this blog post does not create or constitute an attorney-client relationship. An attorney-client relationship is only created by written agreement.

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