The California pay transparency law in 2026 gives job applicants and current employees important rights to salary information. Covered employers must disclose pay scales in job postings, applicants can request the range for positions they are applying for, and employees can request the pay scale for their current position.
A major 2026 change also tightened what counts as a pay scale: it must now reflect a good-faith estimate of what the employer reasonably expects to pay upon hire.
Effective January 1, 2026, SB 642 changed California’s definition of a pay scale.
It now means a good-faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position upon hire.
That change matters because the disclosed range should represent realistic hiring compensation, not simply an extremely broad company-wide salary band that does not reflect what someone could reasonably receive when hired for the position.
SB 642 also expanded California Equal Pay Act protections, including a longer period for bringing pay-discrimination claims.
California employers with 15 or more employees must include the pay scale in covered job postings.
If the employer uses a recruiter, job board, or another third party to publish the opening, the employer must provide the range and the third party must include it in the posting.
DLSE also says the range must appear in the actual posting. An employer cannot satisfy the requirement merely by directing applicants to a QR code or separate link.
Potentially, yes. The California Labor Commissioner interprets the posting rule to apply when a position may ever be filled in California, including remotely.
That means an employer based outside California may still face California disclosure requirements when advertising a remote position that could be performed by a California employee.
The most important 2026 concept is whether the posted salary or hourly range reflects what the employer reasonably expects to pay upon hire.
For example, a job advertisement showing $50,000 to $250,000 for a position that the employer realistically expects to fill between $70,000 and $85,000 could raise questions about whether the broader range represents a genuine good-faith hiring estimate.
The specific facts matter, but the 2026 language makes realistic hiring expectations more important than simply publishing any numerical range.
Yes, when the position’s wages are based on commissions or piece rates.
DLSE states that the posting must include a good-faith estimate of the commission or piece-rate range the employer reasonably expects to pay for the position upon hire.
Employees later experiencing disputes over earned sales compensation can also review their rights with an unpaid commissions lawyer.
Bonuses, tips, benefits, and other additional forms of compensation generally do not have to appear in the posted salary or hourly range, although employers may voluntarily provide that information.
Yes. California employers must provide an applicant with the pay scale for the position the person is applying for upon reasonable request. This right is not limited to companies with 15 employees; the 15-employee threshold specifically governs the job-posting requirement.
Applicants should consider preserving the original job advertisement and any written response to a pay-scale request.
Yes. A current employee can request the pay scale for the position they currently hold, and the employer must provide it.
That can be useful when evaluating whether your actual wage falls within the employer’s range or when comparing your compensation with changes to the role.
However, the employer does not have to disclose the exact wages paid to specific coworkers simply because an employee asks. Employees generally remain free to discuss or inquire about wages, and retaliation for protected wage discussions is prohibited.
Generally, no. California Labor Code §432.3 prohibits employers from seeking an applicant’s salary-history information, including previous compensation and benefits, subject to limited exceptions for information publicly available under specified laws.
An employer also generally cannot use an applicant’s salary history to determine whether to hire the applicant or what compensation to offer.
There is an important difference between salary history and salary expectations. Employers can ask what compensation an applicant expects for the new position.
Preserve the posting before it changes.
Useful evidence can include:
California requires employers to maintain each employee’s job-title and wage-rate history throughout employment and for three years afterward.
If the issue involves missing or incorrect wages after hiring rather than only transparency, How to Know If Your Employer Owes You Unpaid Wages covers the broader wage analysis.
An aggrieved person may file a complaint with the California Labor Commissioner. DLSE states that a written Labor Code §432.3 complaint generally must be submitted within one year after the person learned of the violation.
Employers found to have violated §432.3 may face civil penalties ranging from $100 to $10,000 per violation.
Employees are also protected from retaliation for exercising Equal Pay Act rights. If an employee is disciplined, demoted, subjected to reduced opportunities, or fired after asserting protected pay rights, the circumstances may warrant review by a workplace retaliation lawyer.
The Ghol Firm in Beverly Hills represents California employees in wage, retaliation, discrimination, and related employment disputes.
California pay transparency law in 2026 gives workers more information about compensation before and during employment.
Employers with at least 15 employees generally must include realistic pay scales in covered California job postings. Applicants can request the range for jobs they are pursuing, and current employees can request the pay scale for their own position.
The 2026 good-faith standard also makes the accuracy of the published range more important. Applicants and employees who encounter missing, questionable, or inconsistent salary information should preserve job postings, offers, emails, and pay-scale requests.
SB 642 changed pay scale to mean a good-faith estimate of the salary or hourly wage range the employer reasonably expects to pay upon hire.
Employers with 15 or more employees must generally include the pay scale in covered job postings.
DLSE interprets the requirement to cover positions that may ever be filled in California, including remotely.
California law requires an employer to provide an employee the pay scale for the employee’s current position upon request.
Generally, no. Employers are prohibited from seeking an applicant’s salary-history information, although they may ask about salary expectations for the new role.
Labor Code §432.3 violations may carry civil penalties between $100 and $10,000 per violation.
If you reported illegal conduct and were fired, demoted, written up, suspended, or pressured to resign, contact The Ghol Firm for a free consultation. No fees unless we win.
