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SB 642

Employment: payment of wages.

2025-2026 Regular Session Introduced by Ash Kalra and 1 co-sponsor

SB 642 mandates clear pay scales for job applicants and employees, bans salary history inquiries, and promotes wage equity to reduce disparities based on sex and race.

Chaptered by Secretary of State. Chapter 468, Statutes of 2025.
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Bill Summary · SB 642

Summary of SB 642: Employment - Payment of Wages

Bill Number: SB 642
Introduced: February 20, 2025
Status: Chaptered by Secretary of State. Chapter 468, Statutes of 2025.
Subject: Employment, Payment of Wages

Purpose and Intent

SB 642 aims to enhance wage transparency and equity in the workplace by revising existing laws regarding the payment of wages. The bill seeks to ensure that employers provide clear pay scales to applicants and employees, thereby promoting fair compensation practices and reducing wage disparities based on sex and race.

Key Provisions

  1. Definition of Pay Scale:

    • The bill revises the definition of "pay scale" to mean a good faith estimate of the salary or hourly wage range that an employer reasonably expects to pay for a position upon hire.

  2. Salary History Restrictions:

    • Employers are prohibited from relying on an applicant's salary history when determining whether to offer employment or what salary to offer. They cannot seek salary history information from applicants.

  3. Disclosure Requirements:

    • Employers must provide the pay scale to applicants upon request and include it in job postings if they have 15 or more employees.
    • Employers must also provide current employees with the pay scale for their positions upon request.

  4. Wage Equality:

    • The bill prohibits employers from paying employees at wage rates less than those paid to employees of another sex for substantially similar work, with specific exceptions.
    • A civil action to recover wages for violations must be initiated no later than three years after the last date the cause of action occurs, with a maximum relief period of six years.

  5. Record Keeping:

    • Employers are required to maintain records of job titles and wage rates for each employee for the duration of employment plus three years after employment ends. These records must be available for inspection by the Labor Commissioner.

  6. Penalties for Non-Compliance:

    • Employers found in violation of these provisions may face civil penalties ranging from $100 to $10,000 per violation, depending on the circumstances. A rebuttable presumption in favor of the employee's claim applies if records are not maintained as required.

Impact

  • Who is Affected:

    • All employers in California, including state and local government employers and the Legislature, are subject to these provisions. Employees and job applicants will benefit from increased transparency and fairness in wage practices.

  • Potential Outcomes:

    • The bill is expected to reduce wage disparities based on sex and race, promote equitable pay practices, and empower employees to seek fair compensation.

Procedural Aspects

  • The bill passed through various legislative committees and was approved by the Governor on October 8, 2025. It is now law and will be enforced by the Labor Commissioner.

This legislation represents a significant step toward improving wage equity and transparency in California's labor market, aiming to create a more just and equitable workplace for all employees.

Compiled from official sources — confirm details with the bill’s official record.

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