Pay transparency law in California: what SMBs must put in a job posting (2026)
Yes. Under SB 1162, if you have 15 or more employees (with at least one in California), you must include the pay scale — the salary or hourly wage range you reasonably expect to pay — in any job posting, including roles that could be filled remotely from California.
The rule, in plain English
California's pay transparency expansion (SB 1162, which amended Labor Code §432.3) took effect on January 1, 2023. It applies to employers with 15 or more employees as long as at least one of them works in California.
- Who it covers: any posting for a position that could ever be filled in California — including remote roles a California-based person could do.
- What you must disclose: the "pay scale," meaning the salary or hourly wage range you reasonably expect to pay for the role. If the pay is a fixed amount rather than a range, you may post that set figure.
- Third-party postings: if you use a recruiter, agency, or job board to post on your behalf, the pay scale still has to appear.
- Current employees: on request, you must provide the pay scale for the position an employee currently holds.
- Recordkeeping: keep each employee's job title and wage-rate history for the duration of employment plus three years.
What happens if you don't
The California Labor Commissioner can assess civil penalties of $100 to $10,000 per violation, with larger amounts for repeat violations. For a first job-posting violation, the Labor Commissioner may waive the penalty if you can show every posting has been updated to include the pay scale. Confirm the current figures and the cure provision on the state's official guidance before relying on them.
What to actually put in the job description
You need an honest range — not legalese. Add a line like this to the posting:
Pay scale: $72,000–$98,000 per year, depending on experience. TranscendByDesign is an equal-opportunity employer.
For an hourly role: "Pay scale: $26–$32/hour." If the role pays a fixed rate, you can post that single figure.
California's rule reaches further than most. If a remote position could be performed by someone located in California, the pay scale has to be in the posting — even if your company is headquartered elsewhere.
Frequently asked questions
Does the California pay transparency law apply to small businesses?
It kicks in at 15 employees. Below that headcount you're not required to post the pay scale, though many small employers do it anyway to compete for candidates.
Do remote jobs need a pay scale?
Yes, if the remote role could be filled by someone working in California — the posting must include the pay scale.
What exactly is a "pay scale"?
The salary or hourly wage range you reasonably expect to pay for the role. If the pay is a single fixed amount, you can post that figure instead of a range.
Do recruiters and job boards have to show the range too?
Yes. If a third party posts the role on your behalf, the pay scale still has to appear in the listing.
Generate a CA-compliant job description — free
Our free JD generator builds an inclusive, bias-scanned job description with the California pay-scale disclosure already wired in. No signup.
Write a compliant CA JD →This page is general information, not legal advice, and TranscendByDesign is not a law firm. Pay-transparency rules change and have nuances this summary doesn't cover. Confirm your obligations against the California Labor Commissioner's official guidance and the SB 1162 text, or with employment counsel, before posting.