How to Stay Compliant With California’s Pay Transparency Laws in 2025

California continues to lead the way in workplace transparency, and pay practices are front and center. With evolving legislation and increased enforcement, employers need to stay sharp when it comes to how they advertise roles, disclose salary ranges, and manage internal pay data.

In 2025, compliance with California’s pay transparency laws goes beyond avoiding fines. It’s about building credibility, earning employee trust, and staying competitive in a talent-driven market.

This guide breaks down what businesses need to know to stay compliant and confident in the year ahead.

A Quick Refresher: What California’s Pay Transparency Laws Require

California’s SB 1162, which went into effect in early 2023, significantly expanded requirements around pay transparency. And in 2025, businesses can expect even more scrutiny.

The most critical requirements include:

• Posting Pay Ranges: Any employer with 15 or more employees must include a pay scale (salary or hourly rate) in all job postings. This includes roles that are remote but could be filled by someone living in California.
• Annual Pay Data Reports: Private employers with 100 or more employees or those who hire workers through labor contractors—must submit detailed annual pay data reports to the California Civil Rights Department (CRD). These reports must include information broken down by race, ethnicity, sex, and job category.
• Record-Keeping Obligations: Employers must keep records of job titles and wage histories for each employee. These records must be maintained throughout employment and for at least three years after termination.

Failing to comply could mean fines up to $10,000 per violation, or $100 to $200 per employee in reporting penalties. And with state agencies now better equipped to audit and investigate, businesses can’t afford to overlook the details.

Stay ahead of California regulations with the right tools and guidance.

How to Stay Compliant in 2025

Navigating California’s laws might sound complex, but with the right systems in place, staying compliant becomes much more manageable.

1. Review and Update Job Postings

Pay scale disclosures aren’t optional anymore. Every job post, whether published internally or through an external site, must clearly list the salary or hourly range. Even vague phrases like “competitive pay” won’t cut it.

Keeping job descriptions accurate and consistent is also important. Any discrepancies between advertised and actual job duties could raise red flags during an audit.

2. Conduct Internal Pay Audits

Performing regular pay equity audits helps identify potential issues before they become legal problems. It’s a smart way to ensure employees in similar roles are paid fairly and to confirm compensation practices align with both company values and legal obligations.

Audits should examine both current salaries and historical pay data. Having clear, documented reasoning for any variations in pay (such as experience or performance) is also essential.

3. Educate Hiring and HR Teams

Laws are only as effective as the people implementing them. Make sure hiring managers, recruiters, and HR personnel are trained on pay transparency requirements and how to comply with them during job posting, interviewing, and offer stages.

A simple misstep like sharing a salary offer below the posted range—could put the business at risk.

4. Use the Right Technology

Manual systems can’t keep up with California’s evolving reporting requirements. To stay compliant, businesses need reliable payroll, HR, and timekeeping tools that can accurately track, report, and store employee data.

Modern platforms should make it easy to manage pay ranges, maintain detailed records, and generate the reports required by law. The right technology doesn’t just support compliance. It saves time, reduces risk, and helps teams stay focused on growth instead of paperwork.

Why Local Payroll Expertise Matters for Pay Transparency Laws

Many businesses rely on large national payroll providers—but when it comes to state-specific laws like California’s pay transparency requirements, having local knowledge makes all the difference.

iPay Solutions offers full-service payroll, HR, and timekeeping solutions with a sharp focus on California businesses. From Palm Springs to Indio and throughout the Coachella Valley, employers trust this team to handle the details others might miss.

Beyond just software, iPay Solutions offers human support from professionals who understand the unique demands of California law and how those demands change from year to year. Whether it’s reviewing job postings, preparing pay data reports, or automating compliance reminders, having a team that truly understands the local business environment saves time and prevents costly mistakes.

Moving Forward with Confidence

Pay transparency isn’t just about meeting legal standards. It’s about creating a culture of trust, fairness, and accountability. In 2025, California employers are expected to lead the way and those that do will be better positioned to attract great talent and build lasting teams.

Compliance doesn’t have to be complicated. With the right systems and support, businesses can stay ahead of changing laws while focusing on what they do best.

For employers in the Coachella Valley and throughout California, iPay Solutions offers the tools and guidance to make pay transparency simple and stress-free. From keeping job postings accurate to ensuring your pay data reports are on point, everything is handled with local expertise and a hands-on approach.

Contact iPay Solutions to start building your compliance strategy today and take the guesswork out of California payroll and HR.