Discrimination
California Revises Pay Scale Definition and Equal Pay Timelines
Updated
Senate Bill 642, authored by Senator Limón, amends the California Labor Code to revise how employers describe pay ranges and how long employees have to bring equal pay claims. The measure updates the definition of “pay scale” and lengthens the limitations period for wage-disparity actions. As an ordinary statute chaptered in 2025, it takes effect on January 1, 2026.
Background
California already requires employers to share the pay scale for a position with applicants and, for larger employers, to include it in job postings. Labor Code section 432.3 defined “pay scale” as the salary or hourly wage range that an employer reasonably expects to pay for the position. The statute did not describe the range as an estimate or tie it to a good-faith standard.
Separately, Labor Code section 1197.5, the state’s equal pay law, bars paying employees less than others for substantially similar work based on sex, race, or ethnicity, subject to defined exceptions. Before this bill, a civil action generally had to be filed within two years, or three years for a willful violation. SB 642 amends both sections.
What the Law Changes
Under section 432.3, “pay scale” now means a good-faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire. The disclosure duties themselves remain: employers must provide the pay scale on request, and employers with 15 or more employees must include it in job postings and provide it to third parties that publish postings.
Section 1197.5 now refers to employees of “another sex” rather than the “opposite sex.” A civil action to recover wages under the equal pay provisions may be commenced no later than three years after the last date the cause of action occurs, and an employee may obtain relief for the entire period a violation exists, but not to exceed six years.
The amendment specifies that a cause of action occurs when an unlawful compensation decision or practice is adopted, when an individual becomes subject to it, or when an individual is affected by its application, including each time compensation is paid. It also defines “wages,” “wage rates,” and “sex” for these provisions only, and preserves the continuing-violation and discovery-rule doctrines.
The statute redefines “pay scale” in section 432.3 as a good-faith estimate of the expected wage range upon hire, and extends the equal pay limitations period in section 1197.5 to three years, with recovery reaching back up to six years.
Scope and Definitions
The equal pay definitions apply only to section 1197.5. The bill states that “wages” and “wage rates” include salary, overtime, bonuses, stock, profit sharing, insurance, vacation and holiday pay, allowances, and benefits, and that “sex” carries the meaning given in Government Code section 12926. The bill notes these definitions do not control other sections of the code.
The pay scale rules in section 432.3 continue to apply to all employers, including state and local government employers and the Legislature. The existing complaint procedures, civil penalties, and recordkeeping duties under both sections remain in place.
What This Means for You
SB 642 requires California employers to treat a disclosed pay scale as a good-faith estimate of the expected wage range upon hire, and it sets a three-year filing window for equal pay claims with recovery reaching back up to six years. It touches pay transparency and wage-disparity disputes under the Labor Code.
I write these summaries as general information about developments in California employment law. They are not legal advice and don’t create a mediator–client relationship. For guidance on a specific matter, consult a qualified attorney.