California requires an employer with 15 or more employees to include the pay scale for a position in any covered job posting. The Labor Commissioner interprets this to apply when the position may ever be filled in California, either in person or remotely, and states that at least one employee must currently be located in California for its interpretation of the 15-employee threshold. Pay scale means the salary or hourly wage range the employer reasonably expects to pay for the position. Applicants can request the pay scale for an open position, employees can request the scale for their current position, and commission or piece-rate ranges must be included when applicable.
Jurisdiction: California, United States
Employers With 15 or More Employees Must Include the Pay Scale
California Labor Code section 432.3 requires an employer with 15 or more employees to include the pay scale for a position in a job posting. If the employer uses a third party to publish the vacancy, the employer must provide the pay scale to that third party and the third party must include it in the posting. The Labor Commissioner states that at least one employee must currently be located in California for its interpretation of the threshold. Because the statute and agency guidance contain details about counting and coverage, employers should verify the current Labor Commissioner guidance rather than relying on a generic nationwide employee-count rule.
California Extends the Posting Rule to Certain Remote Jobs
The California Labor Commissioner interprets the pay-scale posting requirement to apply if the position may ever be filled in California, whether the worker would perform the role in person or remotely. This makes location planning important before a national remote vacancy is posted. An employer that is willing to hire someone working from California should evaluate the California posting rule even if the company is headquartered elsewhere. Employers can reduce uncertainty by defining approved work locations in the requisition and ensuring the posting includes the required pay information whenever California remains a possible work location.
Pay Scale Means the Range the Employer Reasonably Expects to Pay
California defines pay scale as the salary or hourly wage range the employer reasonably expects to pay for the position. If the employer intends to pay one fixed hourly amount or one fixed piece rate rather than a range, the applicable fixed rate can be provided. The range should therefore correspond to a real compensation expectation for the opening. Employers should document how the minimum and maximum were approved and update the posting if the actual compensation plan changes. A range created only to populate the field but disconnected from the employer's hiring plan can undermine the purpose of the disclosure.
Commission and Piece-Rate Jobs Need Their Relevant Range
The Labor Commissioner explains that bonuses, tips and other benefits are not required to be included in the pay scale for a standard salary or hourly posting. The rule is different where compensation is based on piece rate or commission. If the position's hourly or salary wage is based on a piece rate or commission, the posting must include the piece-rate or commission range the employer reasonably expects to pay. Employers should therefore identify the actual compensation model before deciding which range belongs in the posting. Optional information about benefits or other compensation can still be added for recruiting purposes.
The Pay Scale Must Appear in the Posting Itself
California's Labor Commissioner states that employers cannot satisfy the posting rule by providing only a hyperlink or QR code that takes the applicant somewhere else to view the range. The pay scale must be included within the job posting itself. This matters for applicant tracking systems and third-party job boards because a compensation field stored elsewhere may not be enough. Employers should test how the final public advertisement renders on each platform, especially when a job board reformats or truncates fields supplied by the employer.
Applicants and Current Employees Have Separate Pay-Scale Rights
The job-posting duty is not the only California transparency requirement. Upon reasonable request, an employer must provide an applicant the pay scale for the position to which the person is applying. Upon request, an employer must also provide an employee the pay scale for the employee's current position. These rights apply independently of whether a recruiter has already discussed compensation informally. Employers should train recruiting and HR teams on where the approved range is stored and create a reliable process for responding to applicant and employee requests without delay or inconsistent answers.
California Also Restricts Salary History Questions
Labor Code section 432.3 generally prohibits an employer from seeking an applicant's salary history information and from relying on salary history as a factor in deciding whether to offer employment or what salary to offer, subject to limited statutory exceptions. An applicant can voluntarily disclose salary history without prompting, but prior salary cannot be used to justify an unlawful pay difference under the Equal Pay Act. Employers should therefore keep salary-range disclosure and salary-history compliance in the same recruitment control: recruiters need to know both what compensation information they must provide and what historical pay information they must not request.
Recordkeeping and Penalties Make the Rule Enforceable
California requires employers to keep records of each employee's job title and wage rate history for the duration of employment plus three years after employment ends, and the Equal Pay Act also requires records of wages, wage rates, job classifications and other terms and conditions of employment for three years. A person alleging a violation of section 432.3 can file a complaint with the Labor Commissioner within one year after learning of the violation. The Labor Commissioner states that civil penalties for section 432.3 violations can range from $100 to $10,000 per violation. Employers should therefore treat salary posting, employee records and recruiter training as connected compliance controls.
Frequently Asked Questions
How many employees trigger California's job-posting pay-scale rule?
Employers with 15 or more employees must include the pay scale in covered job postings. The Labor Commissioner states that at least one employee must currently be located in California for its interpretation of the threshold.
Does California's salary transparency law apply to remote jobs?
The Labor Commissioner interprets the rule to apply when the position may ever be filled in California, whether in person or remotely.
Must California job postings list bonuses and benefits?
The Labor Commissioner states that bonuses, tips and other benefits are not required as part of the pay-scale posting. Commission or piece-rate ranges must be included when the position is paid on that basis.
What penalties can apply for violating California Labor Code section 432.3?
The Labor Commissioner states that civil penalties can range from $100 to $10,000 per violation.
Related Guides
Official Sources
Requirements and practices differ by jurisdiction and organisation. Check current local law, official guidance and professional advice for a specific situation.