If you work in California, knowing your rights around pay transparency can help you make confident and informed career choices. California’s pay transparency laws are designed to ensure fair pay, prevent wage discrimination, and promote openness in how salaries are set. If an employer violates these laws, employees may have the right to take legal action.

What’s New in California’s Pay Transparency Law

California became a leader in pay transparency back in 2018 by banning employers from asking job candidates about their past salaries. Since then, the state has continued to strengthen these protections. In October 2025, Governor Newsom signed SB 642, which takes effect on January 1, 2026.

Here’s what’s changing under SB 642:

• The deadline for filing Equal Pay Act claims is extended from two years to three years.
• Employees can recover unpaid wages for up to six years if a violation existed during that time.
• The law clarifies that a violation can occur when an unfair pay decision is made, when an employee is affected by it, or whenever wages are paid based on that decision.
• “Pay scale” now covers all forms of pay, including salary, bonuses, stock options, and benefits.
• The law expands protection for non-binary employees by replacing the term “opposite sex” with “another sex.”

Pay Range Requirements in Job Postings

Under California Labor Code Sec. 432.3, employers with more than 15 employees must include a pay range in every job posting, even for remote positions. The pay range must be a good-faith estimate of what the employer expects to pay for the role and must appear directly in the job listing—not on a separate page or link.

Pay Range Access for Current Employees

Transparency doesn’t end with job listings. Any current employee in California has the right to ask for the pay range tied to their position. Employers must provide this information upon request, helping employees make better decisions about raises, promotions, and their overall career growth.

Salary History Is Off Limits

Since 2018, California employers have been prohibited from asking applicants about their past pay or benefits. This rule helps prevent previous salary history from influencing future job offers or pay rates. However, if you choose to share past salary information voluntarily, your potential employer can consider it.

Pay Data Reporting for Large Employers

Companies with 100 or more workers or contractors must file yearly pay and demographic reports with the California Civil Rights Department. These reports help the state track and address pay gaps between different groups of employees.

Starting in May 2027, SB 642 will introduce updated reporting categories and require that pay data be stored separately from personnel files. Employers who fail to provide the required reports when asked could face fines or penalties.

Understanding Your Rights

California has some of the strongest pay transparency laws in the country. If you believe your employer is not following these rules or has treated you unfairly regarding pay, it’s essential to have a skillful attorney by your side who can protect your legal rights. The attorneys at Optimum Employment Lawyers provide trusted representation for wage matters and a broad scope of employment issues in California. Contact us online or by calling (949) 391-2327 to schedule a consultation to learn how we can help.