SB 642 (Cal. Labor Code §§ 432.3; 1197.5)

2025 | Fair Pay, Legal Deadlines, Pay Transparency, Remedies Fair Pay, Salary Range

STATUS: Enacted

Strengthens the California Equal Pay Act by: clarifying what constitutes “wages;" harmonizing the statute of limitations with other wage and anti-discrimination statutes; allowing workers to recover more of their lost pay; revising outdated gender binary language; and requiring employers include “good faith” estimates of expected wage ranges in public job postings.

SB 642 strengthens the ability to recover lost wages under California Equal Pay Act by:
o Clarifying that “wages” includes all forms of compensation, including stock options and fringe benefits;
o Extending the statute of limitations from 2 to 3 years, harmonizing it with other wage and anti-discrimination statutes;
o Allowing workers to recover for all pay lost due to pay discrimination, up to six years;
o Revising outdated gender binary language by changing “the opposite sex” to “another sex”; and
o Strengthening existing pay transparency law to ensure “good faith” estimates of wage ranges in job postings

Full Text:
SB 642