NEWSOM SIGNS TRANSFORMATIVE PAY EQUITY LEGISLATION BY SENATOR LIMÓN

(SACRAMENTO) – The Pay Transparency for Pay Equity Act, authored by Senator Monique Limón (D-Santa Barbara) has been signed into law. The Pay Transparency for Pay Equity Act helps narrow gender and racial wealth gaps by giving workers the tools they need to advocate for a salary that supports themselves and their families. 

“This is a big moment for California workers, especially women and people of color who have long been impacted by systemic inequities that have left them earning far less than their colleagues,” said Senator Limón. “California has once again shown its dedication to creating a more equitable economy with SB 1162. As we continue to build a sustainable economy, we must ensure every worker is paid equitably.” 

“Data is a powerful tool. By requiring California employers to collect more substantial pay data we will continue to create more opportunity for women and people of color who are disproportionately underpaid, overworked, and barred from professional and economic opportunity,” said First Partner Jennifer Siebel Newsom. “I’m grateful for Senator Limon’s leadership and commitment to helping us close the pay gap for women and people of color in California. This bill will do more than just expand pay transparency- it will further dismantle the patriarchal systems that engendered pay inequality in the first place as we continue to work towards a California for ALL.”

Specifically, SB 1162 will help narrow the wage gap by requiring employers with 15 or more employees to include salary ranges on all job postings. Research from the National Women’s Law Center shows that when salary ranges are disclosed upfront, women and people of color are more willing to negotiate, more successful in negotiating, thus narrowing the wage gap. 

Additionally, this legislation will shed light on gender and race disparities in employment with third-party staffing agencies. Research shows that temporary employees often fill the same job classifications as direct workers, and when they do, they earn a fraction of the pay despite doing the same work. 

California will join Colorado and Washington as some of the first states to pass legislation requiring the posting of salary ranges on all job listings. It is expected that with a state as large as California, home to over 16.9 million workers, that other states will follow suit. 

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Monique Limón represents the 19th Senate District, which includes Santa Barbara, Ventura, Goleta, Buellton, Carpinteria, Guadalupe, Lompoc, Santa Maria, Solvang, Camarillo, Fillmore, Ojai, Oxnard, Santa Paula, and Port Hueneme. She currently serves as the Chair of the Senate Banking and Financial Institutions Committee, and Chair of the Select Committee on the Nonprofit Sector.

Contact: Christina Montoya christina.montoya@sen.ca.gov