Pay Equity Laws
What is pay equity?
Pay equity is a means of eliminating gender and ethnic discrimination in the wage-setting system. In this context, the criteria which employers use to determine wages must be gender- and ethnicity-neutral.
What is pay equity legislation?
The overarching purpose of pay equity legislation is to prohibit employers from discriminating on the basis of gender or ethnicity in the payment of wages. To assist candidates and clients alike throughout the hiring process, we’ve compiled relevant information associated with pay equity legislation enacted around the United States. This webpage includes updated information, including:
- Bill names
- Effective start dates
- Violations and penalties
- Exceptions related to voluntary disclosure and interview guidelines
If a state or territory is not included in the dropdown below, there is no pending legislation.
*This is not intended to be legal advice.
Location
San Francisco
Bill
No. 170350
Effective
7/1/2018
Violations
Seek pay history of a candidate. Pay history does not include revenue, sales or other production reports.
Penalties
Warning and notice to correct for first violation; $100 for second violation; up to $200 for third violation; up to $500 for each subsequent violation; legal and equitable relief.
Voluntary Disclosure
Employers may rely on information gathered via voluntary disclosure. This is not a violation.
Interview Guidelines
Employers may engage candidates in discussions about salary, benefits and other compensation expectations without violating the law.
Location
Statewide
Bill
AB 168
Effective
1/1/2018
Violations
Seek a candidate’s salary history including compensation and benefits
Penalties
Salary inquiries – unpaid wages and interest, plus an equal amount as liquidated damages and attorney fees.
Voluntary Disclosure
This is not presently addressed.
Interview Guidelines
(not addressed)
Location
Statewide
Bill
Cal. Lab. Code § 432.3 / SB 1162 / SB 642
Effective
1/1/2023 (amendment effective 1/1/2026)
Violations
• Fail to provide pay-scale, meaning a good-faith estimate of this expected wage range that an employer reasonably expects to pay for the position upon hire, for the position, upon reasonable request by an applicant.
• Fail to provide pay-scale, meaning a good-faith estimate of this expected wage range that an employer reasonably expects to pay for the position upon hire, for a current employee’s position upon request by a current employee.
• If the employer has 15 or more employees, fail to include the pay scale, meaning a good-faith estimate of this expected wage range that an employer reasonably expects to pay for the position upon hire, in any job posting.
• If the employer has 15 or more employees and engages a third party to post job postings, fail to provide the pay-scale to the third party.
• Fail to maintain records of job title and wage history for each employee for the duration of employment plus three years after. (Note that a separate California law requires personnel files to be kept for the duration of employment plus four years.)
• If the employer has 15 or more employees, fail to provide the California Civil Rights Department with a report containing median and mean hourly wages by race, ethnicity, and sex within a job category.
• If the employer has 15 or more employees and engages a third party to post job postings, fail to provide the pay-scale to the third party.
• Fail to maintain records of job title and wage history for each employee for the duration of employment plus three years after.
Penalties
• Civil penalty of $100-$10,000 per violation (amount depends on totality of circumstances, including but not limited to whether employer has previous violations).
• Violation of reporting requirement to the California Civil Rights Department is up to $200 per employee.
• Individuals claiming to be aggrieved by a violation may bring a civil action for injunctive relief and any other relief that the court deems appropriate.
Voluntary Disclosure
Not a violation. May rely on voluntary disclosure. Prior salary cannot justify any disparity in compensation.
Interview Guidelines
(not addressed)