California’s new pay scale disclosure law went into effect Jan. 1, and employers would do well for themselves to read up on the new requirements.

The California Labor Commissioner recently released a frequently asked questions addressing some of the lingering questions on issues including postings for remote positions, how to count employees and whether links to pay scales count in a job positing.

The California Chamber of Commerce reviewed the FAQ, highlighting important matters for employers.

To recap, SB 1162 requires employers to make pay scales available to job applicants and employees, in addition to expanding the state’s pay data reporting requirements.

Regarding remote positions, the Labor Commissioner clarified that “the pay scale must be included within the job positing if the position may ever be filled in California, either in-person or remotely.”

For the purpose of counting employees toward the 15-person threshold, the Labor Commissioner said the requirement is consistent with how employers count employees for Covid-19 Supplemental Paid Sick leave and minimum wage rates.

“Applying that method, if an employer with 15 or more total employees has at least one employee currently located in California, then the pay scale disclosure requirements apply,” according to the CalChamber.

Regarding QR codes or links, employers must include the actual pay scale in the job positing instead of just including a QR code or web link to the pay scale.

The FAQ also reminds employers of the new record retention requirements. Beginning Jan. 1, 2023, employers must keep records of a job title and wage history for each employee for the duration of employment plus three years after the end of the employment.

The consequences of non-compliance are substantial. People claiming to be aggrieved by a violation of the law can file a claim with the Labor Commissioner, or civil action, that could result in civil penalties from $100 to $10,000, among other relief, according to CalChamber.