California’s New Pay Transparency Law Takes Effect in 2026
California is stepping up its efforts to make workplaces more transparent and fairer. Beginning January 1, 2026, California employers will face new pay transparency requirements under Senate Bill 642, which requires employers to provide a good-faith pay scale for any position when requested by a job applicant or current employee. The pay scale needs to be a realistic range of expected salary or hourly wage. Employers with 15 or more employees must also include this pay range in all job postings. The goal is to make pay practices more open and consistent, as allowing job seekers and employees to make better-informed decisions about compensation leads to a more equitable workplace and strengthens the job market.
