Earlier this week, California Governor Gavin Newsom signed into law the Pay Transparency for Pay Equity Act which requires employers to disclose compensation information to the public, existing employees and state regulatory agencies.  California is just the latest entrant into what is quickly becoming an emerging trend on the state and local level as Colorado, Washington and New York City are implementing similar pay transparency laws.  The California law requires the disclose of salary ranges on job listings, establishes a right of access to compensation information for current employees, and requires larger employers to disclose wage data to the California Civil Rights Department.

These pay transparency laws are quickly expanding and seem destined, along with other pay equity issues, to be a hot topic in 2023 and beyond.  As more jurisdictions are requiring the disclosure of compensation information, employers should consider getting ahead of the curve and preparing to comply with expanding pay transparency obligations.  Many of these new laws carry recordkeeping and mandatory disclosure provisions, which could carry penalties for noncompliance.  This should provide employers with even greater incentive to review their pay practices and be in better position to comply with pay transparency laws.