Pay transparency in California: what to post, what to disclose, what to fix first

The posting obligation

Employers at or above the covered headcount must include the pay scale in job postings, including postings placed by third parties on their behalf. The scale must be the range the employer genuinely expects to pay — not a range so wide it communicates nothing.

The request obligation

Current employees can ask for the pay scale for their own position, and the employer must provide it. Employers must also maintain records of job titles and wage rate history for each employee for the required retention period.

Why the structure matters more than the posting

Publishing a range for a role exposes every existing employee in that role who sits outside it. Before posting, look at who is in the role, what they earn and whether you can explain the differences by factors you would be comfortable stating out loud: experience, scope, performance, location, tenure at hire.

When the analysis finds gaps

• Do not close every gap at once unless the budget genuinely allows it
• Do document a phased plan with dates, and fund the first phase
• Do fix the largest unexplained gaps first, not the easiest ones
• Do correct the practice that created the gap — usually negotiation-driven starting pay with no range discipline
• Do not communicate adjustments in a way that implies prior pay was unlawful

A reasonable sequence

Job descriptions first, so roles are accurately defined. Then benchmarking, then ranges, then an equity review against those ranges, then postings. Done in that order the whole exercise takes a few weeks and leaves you with a structure you can defend and explain.