Does SB 1162 apply to small contractors?

The pay-scale-in-postings requirement of Labor Code §432.3 applies to employers with 15 or more employees, counting all employees, and covers positions that could be filled in California. Smaller employers must still provide a pay scale to applicants on request.

Is 'From $25/hour' a compliant pay range under SB 1162?

A floor-only rate ('From $25/hr', 'starting at $25') is generally not a good-faith pay scale. The law expects the salary or hourly wage range the employer reasonably expects to pay — a bottom and a top.

What are the penalties for violating SB 1162?

The Labor Commissioner can order civil penalties of $100 to $10,000 per violation. First posting violations may avoid a penalty if the employer shows all postings were updated, but repeat violations do not get that grace.

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SB 1162 for Contractors: What a "Good-Faith Pay Scale" Actually Means in a Job Posting

LocalShield.cloud Compliance Guides · Updated July 2026 · Not legal advice

Since January 2023, California Labor Code §432.3 (amended by SB 1162) has required employers with 15 or more employees to include the pay scale in every job posting — including posts on Craigslist, Indeed, ZipRecruiter, and anywhere a third party posts on your behalf. Three years in, trades postings are still the most common offenders we scan.

What counts (and what doesn't)

The pay scale is the salary or hourly wage range you reasonably expect to pay for the position. In practice:

Posting language	Status
"$28.00 – $36.00 per hour DOE"	Compliant range
"From $25/hour" / "Starting at $25"	Floor only — not a range
"$30/hour"	Single rate — generally insufficient
"Competitive pay," "DOE," no numbers	No pay scale at all

Bonuses, per diems, and benefits don't have to be in the range — but the base wage range does. And it has to be good-faith: a $1–$100/hr "range" is an invitation for scrutiny.

Who's covered

15+ employees (all employees count, not just California ones, provided at least one is in CA) → pay scale required in the posting itself.
Under 15 → you must provide the pay scale to any applicant who asks after an initial interview, and to any current employee for their own position on request.
Using a staffing agency or job board doesn't transfer the obligation — postings made "through a third party" are covered.

What non-compliance costs

$100 to $10,000 per violation in civil penalties, set by the Labor Commissioner. A first posting violation can escape a penalty if you show all current postings were fixed — a grace you only get once. Separately, aggrieved individuals can bring civil actions, and pay-data/record-keeping failures under the same statute carry their own penalties.

For GCs and property managers there's a second-order risk: your subcontractors' hiring practices can pull you into wage-and-hour disputes on shared projects. Auditing the postings of the subs you engage is cheap insurance.

The 60-second fix for any trades posting

State a real range: "$X – $Y per hour, depending on experience."
Check the tool language while you're there — below $33.80/hr you must provide the tools. (Full explainer: California's $33.80 hand-tool rule.)
Update every live posting, on every board, including old ones still indexed.

Run a free compliance scan → paste any job posting link, get an instant report

Sources

California Labor Code §432.3 (as amended by SB 1162, 2022)
DLSE / Labor Commissioner FAQ on pay scale disclosure
IWC Wage Order 4-2001 (companion tool-provision rule)

Disclaimer: This guide is general information for California employers and is not legal advice. Requirements depend on facts (employee counts, remote positions, posting channels); consult a licensed California employment attorney about your specific situation. LocalShield.cloud provides automated, rule-based reviews of job posting text and does not make legal determinations.