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SB 1162

SB 1162: Transparency Law

IS NOW MANDATORY

PAY TRANSPARENCY

IN CALIFORNIA

(SB 1162)

What is California’s Pay Transparency Law or SB 1162?

SB 1162 is a new law signed by California Governor Gavin Newsom on September 27, 2022 and became effective on January 1, 2023. In a nutshell, this law requires Californian employers to:

Include the hourly rate or salary range on job listings and provide the hourly or salary range that they expect to pay for the position and provide it to current employees upon request;

Report the median and mean hourly salary rate within each job category, for each combination of race, ethnicity, and sex on or before the second week of May 2023 or each year thereafter (for employers which have more than 100 employees)

Report the median and mean hourly salary rate within each job category, for each combination of race, ethnicity, and sex on or before the second week of May 2023 or each year thereafter (for employers which have more than 100 employees)

Maintain records of each employee’s job title and wage history during employment and for three years thereafter.

Why does it matter to you?

If you fall in the categories listed above, it is necessary to perform payroll data reporting to comply with California law. Non-compliance can lead to penalties up to $ 100 per employee or any employer who fails to report and a civil penalty of up to $200 per employee for any succeeding violation.

What can Escochecks Inc. do for you?

Escochecks, Inc. offers a company pay analysis using your payroll information and payroll data reporting. Through a pay wage analysis, we can help you assess your current pay equity situation and prepare a 100% compliant payroll data reporting for you. Knowing your situation can help you identify causes of pay inequity and implement changes to lessen the wage disparity among your employees.

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