Understanding Your Rights to Equal Pay in 2026 Under California’s SB 642

Searching for jobs can be a truly overwhelming experience. One of the most frustrating parts is finding job postings that align with your interests and experience, but not seeing any indication of how much the job will pay and whether it would be sustainable for you financially. 

California law sought to reverse this trend through the Pay Transparency Law that went into effect in January 2023. As of January 2026, new requirements under Senate Bill 642 tighten the language in the Pay Transparency Law to further protect workers’ rights to accurate pay information. They also provide additional protections under the state’s Equal Pay Act.  

If you are interested in a job that seems to violate SB 642, speak with an employment attorney in California about your legal options. 

What Is Senate Bill 642?

Senate Bill 642, also known as the Pay Equity Enforcement Act, went into effect on January 1, 2026. The bill amends California’s Pay Transparency Law, providing even more protections for workers regarding job posting wage ranges and pay scale disclosures. This act was passed in an effort to promote effective equal pay requirements and provide transparency about expected wages for new positions. 

Specifically, SB 642 amends the definition of “pay scale” in the Pay Transparency Law and amends the state’s Equal Pay Act.

How SB 642 Changes Pay Scale Disclosure Requirements

Under the original Pay Transparency Law, which went into effect in January 2023, organizations with at least 15 employees were required to include a pay scale in all job listings. This requirement applied whether the posting would be internal, on the company’s website, or on a third-party platform. It required the employer to include an hourly or salary range that they reasonably expect to pay for the position. 

However, employees found that these laws were a bit too broad to be beneficial in many cases. Employers would provide very large pay scales, such as “$40,000 to $100,000,” and give offers that were on the lower end of the scale. This is because the original language defined “pay scale” as the wages the employer expected to pay “for the position” in general, not to a specific hire. 

SB 642 amended this language to require employers to provide a “good faith estimate” of the pay a candidate could expect to receive “upon hire,” as opposed to the range for the position in general, which might have included wages from later on in a hire’s career. 

Along with defining the job posting wage range, SB 642 clarifies that employers cannot ask about salary history or rely on it when determining the salary to offer a new hire. They can consider this information only if it was voluntarily disclosed but should not rely on it to make pay determinations. 

Finally, employers must maintain records of their wage rates, job classifications, and conditions of employment for all of their employees, and these records should remain on file for at least three years. 

How SB 642 Promotes Fair and Equal Pay 

Senate Bill 642 also amends California’s Equal Pay Act, which is codified as Labor Code section 1197.5. Previously, this section barred employers from paying workers less than a worker of the “opposite sex.”

SB 642 adjusted this language to say “another sex,” to be inclusive of non-binary genders. Employees who perform substantially similar work should be paid equally, regardless of gender. This new act also specifies that equal “wages” include all forms of pay, including bonuses, stock options, gasoline allowances, etc. These amendments apply only to section 1197.5 and not to any other sections of the Labor Code. 

If your employer violates the Equal Pay Act, SB 642 has also extended your deadline for bringing about a claim. The new statute of limitations is three years from the date of the violation, with a six-year lookback period. This means that you may seek compensation for the entire period that the violation was present, as long as it does not exceed six years.

Under SB 642, a worker could bring a claim regarding an Equal Pay Act violation if all of the following were true: 

• The employer made an unlawful decision or followed an unlawful practice regarding compensation.
• Someone became subject to that unlawful decision or practice.
• That person’s pay, wages, benefits, or other compensation was affected by the unlawful decision or practice.

The “unlawful decision” could have to do with unequal pay, an employee’s right to minimum wage, or related concerns. If you believe you may have a case that meets these criteria, speak with an employment attorney in CA about your rights and options. 

How an Employment Attorney in CA Helps Workers Navigate Employment Legal Concerns 

California workers have a wide range of rights and protections that are not present in other states. However, understanding all of the laws and acts that apply to employment rights can be overwhelming. An employment attorney in CA can provide personalized legal guidance to workers who believe their rights may have been violated, whether they are facing issues regarding unpaid wages, harassment, discrimination, retaliation, or wrongful termination. 

Working with an employment attorney in CA can help employees understand the sometimes complex legal language dictating employee rights and learn about their options for holding employers accountable for misconduct. Scheduling a consultation with legal counsel is often the most direct way to determine whether a worker potentially has a case against their employer. 

Seek Legal Assistance With Unequal Pay or Wage Disputes From D.Law

Employers are required to adhere to the California Pay Transparency Law or face civil penalties for noncompliance. If your employer or a prospective employer has violated any of the new terms of SB 642 after the effective date of January 1, 2026, you may have a case against them. 

D.Law represents California workers across a range of legal cases, such as wage disputes, retaliation, harassment, discrimination, and more. Whether you are dealing with a violation regarding transparency for pay equity or just want to better understand this legislation, call D.Law today at 818-275-5799.