Effective January 1, 2026, Senate Bill 642 revises California’s Equal Pay Act to expand definitions, clarify claim timelines, and modernize language for inclusivity. The law refines the meaning of key terms, extends the recovery period for wage discrimination claims, and emphasizes employers’ recordkeeping and transparency obligations. Continue your current hiring and disclosure requirements and incorporate these additional details to remain in compliance. If you have any questions about implementing policies and practices in compliance with the Equal Pay Act requirements, please reach out.
| Revision |
What It Means for Employers |
| Narrower “Pay Scale” Definition | “Pay scale” now means a good-faith estimate of the wage or salary range the employer reasonably expects to pay upon hire. |
| Expanded Definition of “Wages” | Now explicitly includes all forms of pay such as bonuses, stock, profit-sharing, allowances, vacation pay, and benefits. |
| Extended Statute of Limitations | Employees may file claims up to 3 years, or 4 years for willful violations. |
| Continuing Violations Doctrine | Recovery for pay inequities can extend up to 6 years if tied to ongoing disparities. |
| Inclusive Language Update | References to “opposite sex” replaced with gender-neutral “another sex.” |
These changes underscore California’s ongoing commitment to pay equity and transparency. Employers should audit compensation structures, ensure consistency in pay-setting and documentation, and confirm that published pay scales accurately reflect actual practices. Regular pay equity analyses and documented justifications for salary decisions can help reduce exposure under the amended law.
