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California's New Pay Transparency Law Takes Effect 2026

10/18/2025

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Summary

Story summary

Governor Gavin Newsom signed SB 642 into law, which will change California's pay transparency and equal pay requirements starting January 1, 2026.
The law mandates employers to include a good faith pay range in job postings and expands the definitions of "wages" and "sex."
It extends the statute of limitations for Equal Pay Act claims to six years and requires employers to keep wage records for the duration of employment plus three years post-separation.
Non-compliance penalties can reach $10,000, and a webinar will be held on October 30, 2025, to assist employers in adapting to these changes.

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Story summary

Governor Gavin Newsom signed SB 642 into law, which will change California's pay transparency and equal pay requirements starting January 1, 2026.
The law mandates employers to include a good faith pay range in job postings and expands the definitions of "wages" and "sex."
It extends the statute of limitations for Equal Pay Act claims to six years and requires employers to keep wage records for the duration of employment plus three years post-separation.
Non-compliance penalties can reach $10,000, and a webinar will be held on October 30, 2025, to assist employers in adapting to these changes.