California Pay Transparency Addendum (SB 1162)
California Pay Transparency Addendum (SB 1162) is a California-specific HR policy addendum for job-posting pay ranges, employee pay-scale requests, and pay-data reporting. Use it to standardize disclosures, assign ownership, and reduce compliance gaps.
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Overview
California Pay Transparency Addendum (SB 1162) is an HR policy addendum for employers that need to disclose pay scales in California job postings, provide pay-scale information to current employees on request, and support California pay-data reporting.
Use this template when you want a clear, repeatable process for who approves ranges, who posts them, who answers employee requests, and who owns reporting. It is designed for employers with California workers, California-based roles, or recruiting workflows that include California applicants. It also helps when you need to align HR, Recruiting, Compensation, and Legal around one documented process.
Do not use this addendum as a substitute for a full compensation policy or a general anti-discrimination policy. It is not meant to set pay philosophy, bonus design, or classification rules. If your organization has no California employees, no California postings, and no California reporting obligation, this template may not be the right fit. If you do use it, make sure the pay ranges are current, the request process is practical, and the correction path is clear when a posting or report is wrong. The most common failure is treating pay transparency as a one-time notice instead of an ongoing operational process.
Standards & compliance context
- This template supports California pay-transparency obligations under SB 1162 and should be paired with the employer’s obligations under the California Labor Code and related agency guidance.
- Job-posting pay-scale disclosures should be aligned with federal anti-discrimination laws enforced by the EEOC, including Title VII, the ADA, and the ADEA, so ranges are applied without bias.
- Employee pay-scale requests should be handled consistently to reduce risk under state pay-transparency rules and to avoid retaliation concerns under the NLRA and other protected-activity frameworks.
- Pay-data reporting workflows should be coordinated with FLSA classification and payroll records so the employer can defend headcount, job category, and pay-band inputs.
- California-specific practices may differ from other states, so multi-state employers should add explicit carve-outs for jurisdictions with separate pay-range posting or notice rules.
- This addendum does not replace obligations to provide reasonable accommodation through the ADA interactive process or to handle leave issues under the FMLA where applicable.
General regulatory context for orientation only — verify current requirements with counsel or the relevant agency before relying on this template for compliance.
What's inside this template
Purpose
Explains why the addendum exists and what compliance gap it closes.
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This addendum establishes the company’s procedures for complying with California pay transparency requirements, including pay-scale disclosure in covered job postings, disclosure of pay-scale information to current employees upon request, and pay-data reporting obligations for covered employers.
This policy is intended to support lawful, consistent, and documented compensation communications and reporting practices.
Scope
Defines which employees, applicants, roles, and locations are covered.
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This addendum applies to California employees, California-based roles, and any recruiting, compensation, or HR personnel involved in posting jobs, making offers, responding to compensation inquiries, or preparing pay-data reports.
California employees: if a position can be performed in California, or if the role is tied to a California work location, the pay transparency requirements in this addendum may apply.
This addendum should be read together with the company’s equal opportunity, compensation, recruiting, and recordkeeping policies.
Definitions
Clarifies terms like pay scale, job posting, and pay-data report so the policy is applied consistently.
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Pay scale means the salary or hourly wage range that the company reasonably expects to pay for the position at the time of posting or disclosure.
Covered employer means an employer subject to California pay transparency requirements, including employers with 15 or more employees for job posting disclosure and employers with 100 or more employees for pay-data reporting.
Job posting means any public or internal posting used to recruit applicants for a position.
Pay data report means the annual report of employee pay and demographic data required by California law for covered employers.
Current employee means an individual actively employed by the company at the time a pay-scale request is made.
Policy Statement
States the employer’s core obligations for disclosure, requests, and reporting.
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The company will disclose the pay scale for covered positions in job postings as required by California law.
The company will provide pay-scale information to current employees upon request for their current position or a position to which they are being considered, consistent with applicable law.
The company will prepare and submit required pay-data reports for covered California employees and maintain records supporting those reports.
The company prohibits retaliation against any employee or applicant who requests pay-scale information, raises a concern about pay transparency, or participates in a lawful investigation or reporting process.
Procedure
Sets out the step-by-step workflow for approving, posting, responding, and correcting.
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- Job Posting Pay-Scale Disclosure
- For covered California positions, the recruiter or hiring manager must include the pay scale in the job posting before the posting is published.
- The pay scale must be reviewed by HR or Compensation for consistency with internal pay bands and the role’s essential function requirements.
- If the role is remote or hybrid and may be performed by California applicants, HR must determine whether California disclosure rules apply before posting.
- Current Employee Pay-Scale Requests
- Current employees may request the pay scale for their current position or a position they are being considered for.
- HR must respond in good faith and without retaliation.
- Responses should be documented and retained in accordance with the company’s recordkeeping practices.
- Pay-Data Reporting
- For employers subject to California pay-data reporting, HR or People Operations must collect the required employee data, validate the report, and submit it by the applicable deadline.
- Data should be reviewed for completeness, accuracy, and consistency before submission.
- Any corrections identified after submission must be documented and escalated to Compliance.
- Recordkeeping
- Maintain copies of job postings, pay-scale disclosures, employee requests, responses, and submitted pay-data reports for the period required by law and company policy.
- Access to compensation and reporting records must be limited to authorized personnel only.
- Job Posting Pay-Scale Disclosure
Roles & Responsibilities
Assigns ownership across HR, Recruiting, Compensation, Payroll, Legal, and managers.
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HR / People Operations: Owns policy administration, employee request handling, and pay-data reporting preparation.
Recruiting / Hiring Managers: Ensure job postings include approved pay-scale information before publication.
Compensation: Maintains pay bands, validates salary ranges, and supports consistency reviews.
Compliance / Legal: Interprets legal requirements, reviews exceptions, and approves corrective actions.
Policy holder: Each manager and HR representative responsible for a covered posting or request must follow this addendum and escalate questions promptly.
Compliance, Corrections, and Discipline
Describes how errors are fixed, escalated, and disciplined when policy is ignored.
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Failure to follow this addendum may result in corrective action, up to and including removal of posting authority, documented warning, retraining, a PIP where appropriate, or other disciplinary action consistent with company policy and applicable law.
If a disclosure error, late report, or incomplete response is identified, HR must investigate promptly, correct the issue where possible, and document the remediation steps.
Nothing in this addendum limits employee rights under the NLRA, EEOC-enforced laws, FLSA, or other applicable employment laws.
Exceptions
Identifies limited carve-outs and who can approve them.
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Any exception to this addendum must be approved in writing by HR and Legal.
California employees: no exception may be used to avoid a legally required pay-scale disclosure or pay-data reporting obligation.
If a conflict exists between this addendum and applicable law, the law controls.
Review & Revision
Explains when the addendum is updated and who signs off on changes.
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This addendum will be reviewed at least annually and whenever California pay transparency laws, reporting obligations, or related guidance change.
Revisions must be approved by HR, Compliance, and Legal before being issued to employees or used in recruiting workflows.
How to use this template
- 1. Fill in the effective_date, version, review_frequency, applicable_jurisdictions, and applicable_roles so the addendum clearly states where it applies and who owns it.
- 2. Define the approved pay-scale source, the approval chain for posting ranges, and the process for updating ranges when compensation bands change.
- 3. Assign Recruiting, HR, Compensation, and Payroll responsibilities for job-posting disclosures, employee pay-scale requests, and California pay-data reporting.
- 4. Publish the addendum with your compensation and recruiting policies, then train managers and recruiters not to deviate from approved ranges or give informal promises.
- 5. Set a correction workflow for stale postings, missing ranges, and reporting errors, including escalation to Legal or Compliance when a material issue is found.
- 6. Review the addendum annually and after any California law change, audit finding, or system change that affects job postings, records retention, or reporting.
Best practices
- Keep one approved source of truth for pay ranges so recruiters do not copy outdated figures from old requisitions.
- Require every California job posting to show the range before the role goes live, not after applications start coming in.
- Document how remote roles are treated when the work can be performed in California, and apply the rule consistently.
- Train managers to route pay-scale questions to HR instead of improvising answers or discussing individual exceptions.
- Use a documented warning and correction process when a posting omits the range or uses an expired band.
- Retain the final posted version of each California requisition so you can show what applicants actually saw.
- Coordinate pay-data reporting inputs early with Payroll and Compensation so classification and headcount errors are corrected before filing.
- Separate this addendum from broader compensation philosophy language so the compliance steps stay easy to follow.
What this template typically catches
Issues teams running this template most often surface in practice:
Common use cases
Frequently asked questions
Who should use this addendum?
Use this addendum if you have employees in California or recruit for California-based roles. It is especially relevant for employers with 15 or more employees that must include pay scales in job postings and for employers with 100 or more employees that must file California pay-data reports. It also helps HR respond consistently when current employees request their pay scale.
What does this template cover that a general pay policy does not?
This addendum is built around California’s pay-transparency requirements, not general compensation philosophy. It addresses pay-scale disclosure on job postings, the process for providing pay-scale information to current employees on request, and the internal steps for preparing and filing pay-data reports. It also includes roles, corrections, and discipline so the policy is operational, not just aspirational.
How often should the policy be reviewed?
Review it at least annually and any time California changes its pay-transparency rules or reporting requirements. You should also review it after changes to your compensation bands, recruiting workflow, HRIS, or applicant tracking system. If you expand into new jurisdictions, confirm whether local pay-range posting rules also apply.
Who should own the process internally?
HR usually owns the policy, with Recruiting responsible for posting pay ranges and Compensation or Payroll supporting range maintenance and pay-data reporting. Legal or compliance should review the addendum before rollout and again when state guidance changes. Managers should be trained not to improvise ranges or give inconsistent answers to employee requests.
Does this replace federal equal pay or anti-discrimination obligations?
No. This addendum sits alongside federal requirements under Title VII, the Equal Pay Act, the ADA, the ADEA, and EEOC guidance, plus any applicable state laws. It helps document a consistent process, but it does not replace the need to ensure pay decisions are non-discriminatory and based on legitimate factors.
What are common mistakes this template helps prevent?
Common mistakes include posting a job without a pay scale, using vague or outdated ranges, failing to respond to employee pay-scale requests, and missing the pay-data filing deadline. Another frequent issue is letting managers negotiate outside approved bands without documentation. The addendum helps assign ownership and create a correction path when errors are found.
Can we customize this for remote or multi-state hiring?
Yes. You should tailor the scope to California employees and California-based postings, then add carve-outs or cross-references for other states if needed. For remote roles, define how you determine whether a California posting is required and who approves the posted range. Keep the California-specific obligations separate from any broader company compensation policy.
How does this work with our ATS or HRIS?
The policy should point to the systems used to store approved pay ranges, publish job postings, and retain reporting records. In practice, Recruiting can pull the approved range from the compensation system, post it in the ATS, and preserve the final version for audit support. HR should also keep a documented process for correcting stale postings and tracking employee requests.
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