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Guidance Regarding California Pay Scale Disclosure Requirements is Released

MSK Client Alert
January 10, 2023

On December 27, 2022, the California Labor Commissioner’s Office released FAQ guidance (the “Guidance”) on California’s new pay transparency law (the “California Pay Transparency Law”) pay scale disclosure requirements. The California Pay Transparency Law took effect on January 1, 2023 and was enacted via amendments to the state’s Equal Pay Act and Labor Code section 432.3. Unsurprisingly, the Guidance itself is an “amendment” to the Department of Labor Standard Enforcement’s (“DLSE”) general Equal Pay Act FAQ page, with relevant pay scale disclosure information beginning at Question No. 27. 

Although this Guidance leaves several questions still unanswered (e.g., must active job postings that went live before January 1, 2023 comply with the California Pay Transparency Law?), it also provides helpful (and much needed) information regarding what constitutes a covered employer, determining an acceptable pay scale and proper disclosure.

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