Agreement with attorney in office. Law and justice concept

What Is Pay Transparency and How Does California’s Law Protect You?

         Employment Laws

Discovering that a coworker doing the same job earns thousands more than you can feel like a gut punch, especially when you have no way to know whether your pay is fair. California’s pay transparency law changed that by giving employees a legal right to know the pay range for their own position, and a related equal pay law gives them a way to challenge unfair gaps.

At The Rubin Law Corporation, we help employees enforce their rights under California’s pay transparency and equal pay laws. If you suspect your employer is paying you less for similar work or retaliating against you for asking about pay, we can walk you through your options in these employment discrimination matters.

What Does Pay Transparency Mean Under California Law?

Pay transparency laws require employers to share salary information with job applicants, current employees, or the public. California’s version, Senate Bill 1162, took effect on January 1, 2023, and expanded what employers must disclose.

Employers with 15 or more employees must include the pay scale, a good-faith estimate of the salary or hourly wage range expected upon hire, in every job posting for positions that could be filled in California. All employers must provide the pay scale for your current position when you ask. Employers with 100 or more employees must also report pay data by race, ethnicity, and sex to the California Civil Rights Department.

How the Equal Pay Act Turns Pay Information Into a Claim

Pay information can reveal a violation of the California Equal Pay Act, found in Labor Code Section 1197.5. This law prohibits employers from paying you less than employees of another sex, race, or ethnicity for substantially similar work, viewed as a composite of skill, effort, and responsibility under similar working conditions. Job titles do not have to match, because what matters is the work itself. The California Fair Pay Act replaced the older “equal work” standard with this broader test.

According to the Labor Commissioner’s Office, you do not have to show your employer intended to discriminate. You only need to show you were paid less for substantially similar work, and the employer must then prove the entire gap is due to one of the following.

  • A seniority system
  • A merit system
  • A system that measures earnings by quantity or quality of production
  • A bona fide factor other than sex, race, or ethnicity, such as education, training, or experience

A bona fide factor must also be job related and applied reasonably. Because the law defines wages broadly to include bonuses, stock options, and benefits, a gap in total compensation can support a claim.

We litigate these cases regularly. Because you do not have to prove intent and the employer carries the burden on its defenses, the key question is usually whether the work is substantially similar. We focus there first, comparing the actual duties, qualifications, and responsibilities rather than job titles.

What Employees Are Entitled to Ask For

You have specific rights that your employer cannot lawfully deny.

  • Pay scale requests: You can ask for the pay scale of your current position, and your employer must provide it.
  • Job posting disclosures: Covered job postings must list the salary or hourly wage range, including those placed through staffing agencies.
  • Retaliation protection: Your employer cannot punish, demote, or terminate you for asking about pay or discussing wages.
  • Complaint rights: You can file with the Labor Commissioner within one year of learning about a pay transparency violation.

Equal Pay Act claims generally must be filed within three years of the last violation, and recovery can reach back as far as six years. Retaliation claims have a shorter one-year deadline, so speaking with an attorney early protects your options.

When a Pay Transparency Violation Signals a Bigger Problem

Pay transparency violations rarely happen in isolation. When an employer refuses to disclose pay scales or reacts poorly to a pay question, it can signal deeper issues, including unequal pay tied to gender discrimination or retaliation against employees who raise concerns.

If you asked about pay and then faced pushback or termination, timing matters. California law creates a presumption of retaliation when an employer takes a prohibited action within 90 days of your protected activity. Employers sometimes call it a restructuring, so ask whether it was real and broad or aimed only at you. Documenting your request and everything that followed can make a meaningful difference.

Contact The Rubin Law Corporation for Help Starting Today

Our attorney, Steven Rubin, has spent his career representing California employees in disputes with employers who violate their rights. We understand how intimidating it can feel to question your employer about wages.

If you requested a pay scale and were denied, were retaliated against, or suspect you are paid less than a coworker for substantially similar work, contact The Rubin Law Corporation for a case evaluation. We will review your situation, explain your rights, and help you determine the strongest path forward, whether that means a Labor Commissioner complaint or a civil claim.