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California’s new SB 642 changes how employers share pay information and how workers can challenge unequal pay. The law is designed to make job postings more honest, pay comparisons clearer, and wage discrimination claims easier to understand. Reach out to our wage and hour attorney in Los Angeles to learn more.
SB 642 does not replace the state’s existing worker protections. Instead, it strengthens them in a few important ways: job posting pay ranges, equal pay comparisons, and the time workers have to bring certain wage claims.
California already requires many employers to include pay ranges in job postings. SB 642 makes that rule more specific. Under the new law, a pay scale means a good faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position when someone is hired.
Some job postings list extremely wide ranges that do not help applicants understand what the job actually pays. A posting may say a role pays $60,000 to $140,000, but it gives little practical value if the employer only expects to offer around $70,000. SB 642 pushes employers to use pay ranges that match the real expected starting compensation. That gives applicants better information before they apply, interview, or negotiate.
The law also updates part of California’s Equal Pay Act. Older language compared employees of the “opposite sex” and it now uses the phrase “another sex,” making the law more inclusive. It can apply to pay discrimination involving women, men, transgender workers, and nonbinary workers.
The core rule stays the same. Employees who perform substantially similar work should not receive unequal pay because of gender, race, or ethnicity. Job titles do not control the comparison. The law looks at the actual work, including skill, effort, responsibility, and working conditions.
Unequal pay does not always appear in base wages. Many employees receive compensation through bonuses, commissions, stock, stock options, profit sharing, benefits, travel pay, vacation pay, holiday pay, or other forms of value. SB 642 makes clear that these forms of compensation can count in an equal pay claim.
This can make a major difference in jobs where total compensation matters more than base salary alone. Two employees may earn similar salaries but receive very different overall pay once bonuses, equity, benefits, or other compensation are included.
SB 642 recognizes that unequal pay can cause ongoing harm. Each affected paycheck, bonus, benefit, or other payment can count as part of the violation.
Workers generally have three years from the most recent violation to file an equal pay claim. If the pay violation continued over several years, recovery may cover the full period of the violation, up to six years. This extension can help employees who did not learn about unfair pay right away.
Job applicants can compare the posted pay range with recruiter messages, interview discussions, and final offers. If the employer lists one range but offers pay that does not match it, the applicant can save the posting, keep written communications, and speak with an employment lawyer about whether the employer violated California’s pay transparency rules.
Employees can look beyond base pay when comparing compensation. Pay stubs, offer letters, job postings, bonus plans, commission agreements, performance reviews, benefits documents, and written pay messages can help show the full value of the compensation package.
These records can support an equal pay claim if workers in substantially similar roles receive different compensation based on sex, race, or ethnicity. An employment lawyer in Los Angeles can review the records, compare the pay structure, and explain whether the employee has grounds to pursue unpaid wages or other legal relief.