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California Compliance

Do I have to post a pay range if my California company has fewer than 15 employees?

By , J.D., MS-HRM

Published September 20, 2026. Last updated September 25, 2026.

Do I have to post a pay range if my California company has fewer than 15 employees?

Short answer

No. Under Labor Code 432.3, the requirement to put a pay scale in every job posting applies to employers with 15 or more employees. Every California employer, at any size, must still give an applicant the pay scale for the position on reasonable request and give a current employee the pay scale for their own role on request.

What applies at every size?

Labor Code 432.3 has two layers. The first applies to every employer in California, including a company of one:

  • You cannot ask an applicant about their salary history or rely on it to set pay.
  • You must give an applicant the pay scale for the position on reasonable request.
  • You must give a current employee the pay scale for their own position on request.

The second layer starts at 15 employees: the pay scale must appear in every job posting, including postings made through a recruiter or job board. Employers at that size must also keep records of each employee’s job title and wage rate history for the length of employment plus three years.

How do you count to 15?

The California Labor Commissioner’s equal pay FAQ says the posting rule applies to an employer with 15 or more employees anywhere, as long as at least one works in California. A San Francisco startup with 3 people in California and 14 in Texas is covered.

Count part-time employees. Headcount moves, so check it when you post, not once a year. If you are at 13 and hiring two, the posting that brings you to 15 is the one to get right. The full list of what changes as you grow is on the headcount page.

What “pay scale” means now

Since January 1, 2026, SB 642 defines the pay scale as a good-faith estimate of the salary or hourly wage range you reasonably expect to pay for the position upon hire. A range like $60,000 to $180,000 for an entry-level coordinator is not a good-faith estimate. The Labor Commissioner’s guidance also says the range has to appear in the posting itself; a link or QR code does not count.

Why you should post the range anyway

  • You will be over 15 sooner than you think. Building the habit now means no scramble later.
  • Applicants will ask. You have to answer every one of them. Posting it saves the back and forth.
  • Candidates filter on it. Postings without a range in a market where most employers show one read as either behind or hiding something.
  • It forces the pay decision early. You find out before the offer stage whether the role is funded at a level that will attract the person you need.

How do you answer a request under 15?

When an applicant asks, respond in writing with the range you reasonably expect to pay for that position. Keep it short: “The pay scale for this role is $68,000 to $78,000 per year, based on experience and scope.” Keep a copy. Do not ask the applicant what they earn now in the same message, since that question is off-limits at any size.

What goes wrong most often

  • A recruiter posts the role and leaves off the range the owner gave them.
  • An old posting stays live on a job board after headcount crosses 15.
  • The range is set so wide it would not survive a good-faith test.
  • A manager asks “what are you making now?” in the interview.

If you are close to 15 or growing fast, a single review of your postings and interview scripts catches all four. If you are not sure how to build the range itself, here is the method. And if a posting has already gone out without one, here is what happens next.

McKinley holds a J.D. but is not a licensed attorney. Articles here are general information, not legal advice. For your specific situation, talk with an employment attorney.

Data current as of September 2026. Sources are linked where each figure appears.

From the store

This article is general information, not legal advice. Laws change and every situation is different; for advice on yours, talk with an employment attorney.

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