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On October 8, 2025, Governor Newsom signed Senate Bill (SB) 642, which revised California's Equal Pay Act.
Revisions to the Act will take effect January 1, 2026.
Under the amendment:
- The definition of "pay scale" is revised to mean "a good faith estimate of the salary or hourly wage range the employer reasonably expects to pay for the position upon hire."
- The definition of "sex" is aligned with other portions of the Fair Employment and Housing Act.
- The definition of "wages" and "wage rates" is revised to include "all forms of pay, including but not limited to, salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning and gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits."
- The right to obtain relief is limited to a total of six years.
- There is new guidance on what constitutes a cause of action for violations of the California Equal Pay Act.
If you have questions about SB 642 or related issues, contact a Jackson Lewis attorney to discuss.
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