In California, existing law requires an employer, upon reasonable request, to provide the pay scale for a position to an applicant applying for employment or to an employee that is currently employed. Additionally, employers with 15 or more employees must include the pay scale for a position in any job posting. A “Pay scale” is defined as the salary or hourly wage range that the employer reasonably expects to pay for the position.
Newly passed Senate Bill 642 revises the definition of “pay scale” to mean a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire.
SB 642 also revises the state’s Equal Pay Act provisions to prohibit an employer from paying employees at wage rates less than the rates paid to employees of “another” sex instead of “the opposite” sex as currently described in existing law.
Additionally, the bill increases the statute of limitations on when civil actions can be commenced for violations of the Equal Pay Act from two to three years after the last date of the cause of action occurs. The bill entitles an employee to obtain relief for the entire period of time in which a violation exists, but not to exceed six years.
SB 642 specifies that a cause of action occurs when any of the following occur:
- An alleged unlawful compensation decision or other practice is adopted.
- An individual becomes subject to an alleged unlawful compensation decision or other practice.
- When an individual is affected by application of an alleged unlawful compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from the decision or other practice.
Finally, the bill adds the following definitions to the provisions of the Equal Pay Act:
- “Sex” has the same meaning as defined in Section 12926 of the Government Code.
- Under Government Code section 12926 “sex” includes but is not limited to: pregnancy or medical conditions related to pregnancy; childbirth or medical conditions related to childbirth; and breastfeeding or medical conditions related to breastfeeding. Under Government Code section 12926 “sex” also includes, but is not limited to, a person’s gender. “Gender” is defined to mean sex and includes a person’s gender identity and gender expression. “Gender expression” means a person’s gender-related appearance and behavior whether stereotypically associated with the person’s assigned sex at birth or not.
- “Wages” and “wage rates” include all forms of pay, including, but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.
These changes are effective on January 1, 2026.