Recently, a reader sent me a message asking what it means when a job posting lists a salary range of $70,000 to $140,000.

When I first saw those numbers, I couldn't help but laugh. A range that wide is almost like a lottery number rather than a salary.

So today, I want to break down California's pay transparency law, known as SB 1162, which requires employers to disclose salary ranges in job postings starting January 1, 2023.

This applies to employers with 15 or more employees. Even if employees are spread across different states, as long as there is at least one California worker among the total of 15, it applies.

It's also important to note that the salary range must be included directly in the posting. The Department of Labor's stance is that links or QR codes saying "click here for details" are not acceptable.

The same goes for postings made through third parties like recruiters or job boards. The company must provide the salary range, and that must be included in the posting.

The Department of Labor interprets that remote positions available to work in California are also included. If a company in another state is hiring California residents, it's worth paying attention to.

Additionally, there's been a change this year. Starting January 1, 2026, SB 642 will redefine what a "pay scale" is.

Now, the salary range must be a good faith estimate of what the company reasonably expects to pay at the time of hiring. This means you can't just throw in the amount you might earn after several years.

So, the previously mentioned wide range is becoming less acceptable under the law. Of course, if the job has a wide range of levels, then a broader range may be justified.

One area that often confuses people is that the pay scale listed in the posting refers to the base salary, meaning the annual salary or hourly wage range.

Bonuses, stock options, and commissions do not have to be included in the posting. So, if you're curious about total compensation, you need to ask separately.

Remember how in Korea, the amount of performance bonuses was a crucial point during salary negotiations? It's the same here. The numbers in the posting are the base menu, and you need to check the side items separately.

Towards the end of the interview, casually ask, "Does this position include bonuses or RSUs?" It's natural to bundle that with questions about benefits and 401(k) matching.

So how should you read the range? I see the lower number as "reality" and the midpoint as my "negotiation target."

The upper number is what I think would be offered to someone with exactly the right experience or someone the company really wants. Many people get disappointed when they only look at the upper number.

Looking at two or three similar job postings from the same company helps you get a better sense of things. You can see how the ranges overlap by level and get an idea of where you might fit in.

The same principle applies to hourly postings. If the lower end of the range is close to California's minimum wage, it's often the number set for someone entering without experience.

What if there's no range in the posting? Applicants can request the salary range from the company, and the company must provide it if the request is reasonable.

This provision applies regardless of the number of employees. You can ask about the pay scale for your position at your current company as well.

On the other hand, it's prohibited in California for companies to ask about your salary at previous jobs. If that question comes up in an interview, it's perfectly fine to politely decline to answer.

Companies must keep records of each employee's job title and wage history for the duration of employment and for three years after leaving. This means there's evidence if issues arise later, which is a reassuring provision.

If a violation occurs, the Department of Labor can impose civil penalties ranging from $100 to $10,000 for each violation.

However, if it's the first violation and the company shows that it has corrected all postings, the fine can be waived. Initially, there will be a warning, and from the second violation onward, real fines will apply.

SB 642 also extends the statute of limitations for equal pay lawsuits. You can now file a lawsuit within three years of the last violation and seek relief for up to six years.

The definition of wage range under the equal pay law has also expanded to include bonuses, stock options, and various allowances. Even if only the base salary is listed in the posting, the assessment of discrimination will consider total compensation.

Finally, I want to add my two cents. Many people, especially among our Korean community, feel that bringing up salary first is impolite.

However, this law was created to eliminate that kind of guessing game. For negotiations to be fair, information needs to be openly available.

I would capture the range from the posting and calmly ask about bonuses and benefits during the interview. Not hesitating in front of the numbers is how I believe this law should be properly utilized.