1. Pay Scale Disclosure Requirements for Job Postings
California Labor Code § 432.3 requires employers with 15 or more employees to include the pay scale in covered job postings. The statutory definition of a pay scale is a good faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position upon hire.
Scope of Job Postings and Required Information
The posting rule covers employer job advertisements and postings announced or published through third-party recruiting services. Employers must list the salary or hourly wage range directly in the posting rather than providing only a hyperlink or QR code to an external compensation page.
Inclusion of Benefits and Variable Compensation
California law generally does not require additional compensation or tangible benefits to be included in the posted pay scale. Employers may separately describe healthcare, retirement, bonuses, or other benefits, but those items do not replace the required pay scale. If compensation is based on a piece rate or commission, the corresponding good faith estimate of that range must be included.
2. Employer Coverage and Remote Work Applicability
The 15-employee threshold determines whether an employer must include pay scales in job postings. The Labor Commissioner provides additional guidance on employee counting and positions that may be filled in California.
Employee Count Calculations and Jurisdictional Reach
The Labor Commissioner interprets the 15-employee threshold to include employees inside and outside California when at least one employee is currently located in California. Under that interpretation, an employer with 14 out-of-state employees and one employee in California meets the 15-employee threshold.
Remote Roles and Multi-State Recruitment Considerations
The Labor Commissioner interprets the posting requirement to cover a position that may ever be filled in California, either in person or remotely. Multi-state recruitment may therefore require employers to coordinate pay-scale posting rules with broader Employment, Compensation & Benefits requirements.
3. Restrictions on Seeking Candidate Salary History
California Labor Code § 432.3 generally prohibits employers from seeking an applicant's salary history when making hiring and compensation decisions. The statute distinguishes prohibited inquiries from salary information that an applicant voluntarily discloses without prompting.
Statutory Prohibitions and Voluntary Information Exceptions
Employers generally cannot orally or in writing seek an applicant's past wages, salary, or benefits during the hiring process. If an applicant voluntarily discloses prior compensation without prompting, the employer may consider that information when determining salary. Prior salary, however, cannot justify a pay disparity prohibited by the California Equal Pay Act.
Documenting Salary Decisions without Prior Compensation Data
When evaluating pay differences under the California Equal Pay Act, lawful factors may include experience, training, education, or established compensation systems when the statutory requirements are satisfied. Broader Pay Equity Audits may examine whether compensation structures and documented pay factors comply with applicable equal-pay requirements.
4. Current Employee Pay Scale and Recordkeeping Rules
California pay transparency rules also give current employees access to the pay scale for the position they currently hold. Separate recordkeeping requirements preserve job-title and wage-rate information for Labor Commissioner review.
Obligations Upon Current Employee Request
Labor Code § 432.3 requires an employer, upon request, to provide an employee with the pay scale for the position in which the employee is currently employed. This requirement is not limited to employers with 15 or more employees, unlike the statutory threshold for job-posting disclosures.
Employee Pay Scale Requests and Recordkeeping
Employers must maintain records of job titles and wage-rate histories for each employee throughout employment and for three years after employment ends. Failure to maintain required records creates a rebuttable presumption in favor of the employee's claim under § 432.3. These requirements also form part of broader Workplace Compliance obligations.
5. Legal Consequences and Civil Penalties for Non-Compliance
Violations of Labor Code § 432.3 may lead to Labor Commissioner complaints, civil penalties, or private civil actions. The available consequences depend on the violation and the statutory enforcement provisions.
Labor Commissioner Complaints and Civil Penalties
A person claiming a violation of Labor Code § 432.3 may file a written complaint with the California Labor Commissioner within one year after learning of the violation. Civil penalties range from $100 to $10,000 per violation, with the amount determined from the totality of the circumstances. For a first violation of subdivision (c), no penalty is assessed if the employer demonstrates that all open-position postings have been updated to include the required pay scale.
Private Rights of Action and Statutory Remedies
A person claiming a violation may also bring a civil action for injunctive relief and any other relief the court deems appropriate under Labor Code § 432.3. These statutory remedies operate within the broader framework of California Labor and Employment Law.
6. Frequently Asked Questions
Are employers required to list health insurance and equity packages in job postings?
No. California law generally does not require additional compensation or tangible benefits to be included in the posted pay scale. Employers may voluntarily mention benefits or bonus structures, but those items do not replace any pay information otherwise required by law.
Does California's pay transparency law apply to third-party recruiters?
Yes. An employer with 15 or more employees that uses a third party to announce, post, publish, or otherwise make known a job posting must provide the pay scale to that third party. The third party must include the pay scale in the job posting.
23 Sep, 2026
