Governor Newsom just signed SB 642 into law, making big changes to California’s pay transparency and equal pay requirements. The law goes into effect January 1, 2026, and employers need to start preparing now.

For a full overview of the other employment bills signed and vetoed by the Governor impacting employers in 2026, you

Employers of 100 or more employees to report to the California Civil Rights Department (“CRD”) pay and hours-worked data by establishment, pay band, job category, sex, race, and ethnicity.  The pay data reports are due by May 10, 2024.  This requirement applies to employers even if they are based outside of California, but have one

Pay equity and transparency laws are being considered within the United States and by many countries.  For example, internationally, Europe is reviewing a potential law requiring all wages to be published, Iceland requires companies to prove pay equity since 2018, and a similar law in Canada has passed for employers with 10 or more employees.