Quick Answer: California's SB 1162 requires employers with 15+ employees to include a salary range in all job postings. This applies to jobs in California AND remote positions that could be filled by California residents. Penalties range from $100 to $10,000 per violation.
What Is SB 1162?
Senate Bill 1162, effective January 1, 2023, is California's landmark pay transparency law. It's one of the strictest in the nation and applies to a wide range of employers.
The law has three main requirements:
- Job posting transparency — Include salary ranges in all job ads
- Pay scale disclosure — Provide pay scales to employees upon request
- Pay data reporting — Large employers must report pay data to the state
This guide focuses on the job posting requirements — the part most relevant to recruiters and hiring managers.
Who Must Comply?
SB 1162 Applies To:
- Employers with 15+ employees
- Jobs performed in California (even partially)
- Remote positions that could be filled by CA residents
- Third-party recruiters posting on behalf of covered employers
Important: The 15-employee threshold is counted nationwide, not just California employees. If you have 15 employees across all locations and hire one person in California (or remotely who could be in CA), you must comply.
What Must Be Included in Job Postings?
California requires:
- Pay scale — The salary or hourly wage range you reasonably expect to pay
- The range must be a good-faith estimate, not artificially wide
- Commission-based roles: include base pay range only
Unlike some other states, California does not explicitly require benefits disclosure in the job posting. However, you must provide pay scale information (including benefits) to employees upon request.
Generate a California-Compliant Posting
Enter your job details and get disclosure text that meets SB 1162 requirements.
Generate Now →Example: Compliant vs Non-Compliant
Software Engineer - San Francisco
Competitive salary based on experience. Great benefits package!
❌ No salary range provided
Software Engineer - San Francisco
Pay Range: $140,000 - $180,000 annually
✓ Clear salary range included
What About Remote Jobs?
This is where many employers get tripped up. SB 1162 applies to remote positions if:
- The job could be performed in California
- You're open to hiring California residents
- You have 15+ employees nationwide
If you post a "Remote - US" job and don't explicitly exclude California, the law applies. Many employers now include California-compliant salary ranges in all remote postings to avoid issues.
👉 Read our full guide on remote job salary disclosure
Penalties for Non-Compliance
California's enforcement structure:
| Violation | Penalty |
|---|---|
| First violation | $100 - $10,000 |
| Subsequent violations | Up to $10,000 each |
| Employee lawsuit | Injunctive relief + attorney fees |
Private right of action: Unlike some states, California allows employees to sue employers directly for violations. This creates additional liability beyond state enforcement.
👉 See our complete penalties guide
How Third-Party Recruiters Are Affected
If you're a recruiter or staffing agency posting jobs on behalf of employers, you share responsibility:
- You must ensure postings include required salary information
- If the employer doesn't provide ranges, you must request them
- Liability can extend to both the employer and the agency
Best practice: Make salary range collection a mandatory part of your intake process.
Who This Applies To
Only if 15+ employees
If 15+ employees, yes
Yes — if role can be filled by CA resident
Yes — third parties included
Must provide on request
Generally no — W-2 only
Make Your California Postings Compliant
Use our free tool to check existing postings or generate new compliant disclosure text.
Key Takeaways
- SB 1162 applies to employers with 15+ employees nationwide
- Include a good-faith salary range in all job postings
- Remote jobs are covered if they could be filled by CA residents
- Penalties up to $10,000 per violation + private lawsuits
- Third-party recruiters share compliance responsibility