Pay Scale

As defined by California Labor Code Section 432.3, 'pay scale' refers to the salary or hourly wage range that the employer reasonably expects to pay for a specific position. For positions compensated by a set hourly amount or piece rate, that specific rate must be provided. This definition explicitly excludes compensation or tangible benefits provided in addition to a salary or hourly wage, such as bonuses or tips, although employers may choose to include such information to enhance recruitment. The requirement to disclose pay scales in job postings and upon request is a key component of California's pay transparency laws, aiming to reduce wage disparities by providing applicants and employees with critical wage information.

Under California Senate Bill 1162, 'pay scale' is defined as the salary or hourly wage range that the employer, in good faith, reasonably expects to pay for a specific position. This definition is crucial for compliance with the bill's requirements regarding the disclosure of compensation information in job postings and to current employees upon request. The intent is to provide transparency and enable applicants and employees to understand the potential earnings for a role, thereby fostering more equitable pay practices and informed career decisions.