New CA Pay Transparency Requirements for 2023 and other law changes – Covid,CFRA

SB1162 was signed into law this week. According to the bill, the goal of the law is to promote and ensure pay equity. Beginning January 1, 2023, small employers in California will be subject to several new requirements. 

***Employers with 15 or more employees (located anywhere) will be required to post the pay range for jobs in their job postings.  This includes postings through a third party service. The pay range is defined as the range that the employer reasonably expects to pay for the position. 

***Upon request, employers of all sizes will be required to provide employees with the pay range for their current position.Many small employers do not have established pay ranges.

To establish pay ranges, we recommend job descriptions for each position and tiered pay bands into which jobs are slotted into based on market and internal valuing. Employers will be under increased scrutiny around their pay decisions and pay discrepancies between employees. While there are valid reasons employees in the same job are paid at different rates (seniority, merit, experience, etc.), invalid reasons will more easily come to light.

ACTION/TO DO: We recommend covered employers begin preparing for 2023 by ensuring they have valid  pay ranges for their jobs and a defensible reason why employees are placed where they are in their range.

An individual that claims to be aggrieved by a violation of the law can file a claim with the Labor Commissioner or a civil action. Recordkeeping requirements also apply: employers of all sizes must keep records of job title and wage rate history for employees throughout their employment and for three years after termination. These records must be made available to the Labor Commissioner in the event of a claim. No records equals a rebuttable presumption in favor of an employee’s claim.

Remember, discussing wages is a protected activity for employees and it’s likely to increase as this law becomes effective.

This communication is directed to employers with fewer than 100 employees. Employers with 100+ employees have additional reporting and compliance requirements. 

For assistance with developing pay ranges and compliance with this new law, please contact Brenda Gilchrist at or call her directly at 707-526-0877 x11. Brenda is an expert in compensation design and can assist you with conducting a market based compensation study and help you create pay ranges and pay practices.
Covid Updates – Effective Now

Supplemental Paid Sick Leave Extension (SPSL) – As expected, the SPSL that was set to expire September 30, 2022 has been extended through December 31, 2022. There is no new entitlement of SPSL, just the extension of time for the original entitlement. Applies to 26+ employee companies.

COVID-19 Exposure Notifications – This requirement is extended until January 1, 2024. There are changes to notification methods, currently in conflict with the OSHA ETS. We will provide an update when clarification comes through. Applies to all employers.

Two other important legal updates both effective 1/1/23: 

CFRA expansion: covered employees may take five days of unpaid bereavement leave after the death of a covered family member, within three months of the death. The leave does not have to be consecutive. Employees must have worked for the employer for more than 30 days prior to the start of the leave to be eligible. CFRA applies to employers with 5+ employees.

CFRA Leave/CA Paid Sick Leave expansion: the class of people for whom an employee may take leave will include a “designated person”, who the employee can identify at the time the employee requests the leave. A designated person is defined as “any individual related by blood or whose association with the employee is the equivalent of a family relationship,” and includes domestic partners. An employer can limit an employee to one designated person per 12-month period. Employers may also require employees to substitute accrued vacation leave or other accrued time off during a leave period. CFRA applies to employers with 5+ employees. CA Paid Sick Leave applies to all employers.
As always, we are here to help as you navigate the ever-changing landscape of employment policy and practices. Contact your HR Matrix consultant or call our direct line at (707) 526-0877 if you need assistance or have questions.