Discrimination, Harassment and Retaliation: Expansion to SB 642 and SB 464

Overview of SB 642 – Pay Scale Disclosure & Equal Pay Act

Senate Bill (SB) 642 expands California’s pay scale disclosure obligations and the California Equal Pay Act. Employers are required to furnish pay scale details to both applicants and current employees upon request. Organizations with 15 or more employees must include pay scale information in all job postings. SB 642 revises the definition of “pay scale.”

Key Changes 

1. Pay Scale Definition Revised
   • Now "pay scale" means a “good faith estimate” of the salary/hourly wage range the employer reasonably expects to pay upon hire. 
2. Broader Equal Pay Protections
   • Includes non-binary employees in gender-based pay equity protections.
   • Expands definition of “wages” to include all forms of compensation (bonuses, stock options, allowances, benefits).
3. Equal Pay Act Updates
   • Statute of limitations increased from 2 years to 3 years.
   • Allows recovery to reach back up to 6 years. 
     
     

Overview of SB 464 – CA Pay Data Reporting for employers with 100+ employees

Senate Bill (SB) 464 expands CA pay data reporting requirements for large employers. 

Key Changes

1. Data Storage:  Demographic information collected for pay data reporting must be stored separately from personnel records. 
2. Job Categories: Increases from 10 to 23 categories starting January 1, 2027, requiring significant HR system updates and workforce mapping.
3. Penalties: Remove court discretion and civil penalties for noncompliance become mandatory.

HR Best Practice Recommendations

1. Update Job Postings & Pay Scale Practices:
   • Ensure pay scale disclosures reflect the pay scale requirement. Respond to applicants' and candidates' inquiries regarding the pay scale information.
2. Review Equal Pay Compliance:
   • Adjust recordkeeping and audit processes for extended statute of limitations and 6-year recovery window.
3. Large Employers: Prepare for Pay Data Reporting Changes:
   • Separate demographic data from personnel files.
   • Implement processes to ensure timely reporting and avoid mandatory penalties for noncompliance.
   • Plan for expanded job categories by 2027.
4. Communicate Changes:
   • Inform HR, recruiters, and compliance teams about new requirements.

Legislative Impacts

California is advancing workplace equity through stronger transparency, stricter reporting, and inclusion. Employers face increased compliance demands, greater litigation risk, and the need for operational changes. 

Closing Remarks

These legislative updates underscore California’s continued focus on pay transparency, equity, and workplace fairness. Employers should act promptly to align policies, reporting practices, and training programs with these new requirements to avoid compliance risks and penalties. Staying proactive now will ensure smooth implementation and reinforce your organization’s commitment to equity and legal compliance.

Stay Compliant with SB 642 and SB 464

Ensure your policies and procedures align with California’s evolving employment laws. Employer’s Guardian offers expert guidance to help you navigate these changes. Contact us today to learn more.