Employment: payment of wages.

The maximum lookback period for obtaining relief for wage discrimination violations was reduced from 10 years to 6 years. Employees can still seek relief for the entire period a violation exists, but recovery is now capped at six years rather than ten.

In Section 1197.5(i)(3), the phrase 'discriminatory compensation decision or other practice' was replaced with 'alleged unlawful compensation decision or other practice' in all three trigger events (adoption, becoming subject to, and being affected by). This broadens the scope of what triggers the statute of limitations clock by removing the requirement that the practice be characterized as discriminatory rather than merely alleged to be unlawful.

The maximum period for which an employee can obtain relief for a wage discrimination violation was reduced from 10 years to 6 years in Section 1197.5(i)(2).

Removed the explicit provision stating that a series of discriminatory wage payments arising from an ongoing discriminatory compensation decision or practice is actionable as a continuing violation (former Section 1197.5(i)(3)). The general savings clause preserving the 'continuing violation' doctrine and 'discovery rule' remains, but the specific statutory language creating the continuing violation for series of payments was deleted.

In Section 1197.5(i)(3), the term 'discriminatory compensation decision or other practice' was replaced with 'alleged unlawful compensation decision or other practice' in all three trigger events (adoption, becoming subject to, and being affected by). This shifts the legal framing from a finding of discrimination to an allegation of unlawfulness.

Cover page replaced Senate/Assembly passage signatures and Governor receipt date with 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGISLATIVE MATERIAL' header, Chapter 468 designation, and approval/filing date of October 8, 2025.

Page headers changed from 'SB 642' format to 'Ch. 468' format, and page numbering adjusted from 94 pages to 93 pages due to reformatting.

The statute of limitations for wage recovery actions was changed from 3 years (or 4 years for willful violations) after the cause of action occurs to a flat 3 years after the LAST date the cause of action occurs, eliminating the extended period for willful violations.

A new provision allows an employee to obtain relief for the entire period in which a violation exists, capped at 10 years. This gives employees a longer look-back window for recovering back wages than the prior version allowed.

New subsection (i)(4) states that nothing in the statute prohibits the application of the doctrine of 'continuing violation' or the 'discovery rule' to any appropriate claim, preserving common law doctrines that could extend or toll limitations periods.

The definition of 'pay scale' was narrowed by adding the phrase 'upon hire,' so it now means a good faith estimate of the wage range an employer reasonably expects to pay for the position upon hire, rather than just for the position generally.

A new sentence was added at the end of the definitions section stating that the definitions of 'wages' and 'wage rates' in this section shall not be construed to define those terms for purposes of any other section of the Labor Code, limiting the scope of the definitions.

Assembly Member Kalra was added as a coauthor of the bill.

Removed the requirement that pay scales provided to applicants upon request must be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range (Section 432.3(c)(1)).

Removed the requirement that pay scales in employer job postings (for employers with 15 or more employees) must be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range (Section 432.3(c)(3)).

Removed the requirement that pay scales in third-party job postings must be no more than 10 percent above or below the mean pay rate within the salary or hourly wage range (Section 432.3(c)(5)).

Corrected the state-mandated local program designation from a contradictory 'yes no' to simply 'no,' consistent with removing language about expanding an existing crime.

The definition of 'pay scale' in Labor Code Section 432.3(m)(1) was changed from 'the salary or hourly wage range that the employer reasonably expects to pay for the position' to 'a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position.' This gives employers more flexibility by requiring only a good faith estimate rather than a precise figure.

In Labor Code Section 1197.5(a), the prohibition on paying employees less than those of 'the opposite sex' was changed to 'another sex.' This broadens the protected class language to be more inclusive and aligns with modern non-binary-inclusive terminology used in California's Fair Employment and Housing Act.

The statute of limitations for civil actions to recover wages under Section 1197.5(i)(1) was extended from 2 years to 3 years for general violations, and from 3 years to 4 years for willful violations. This gives employees a longer window to file wage discrimination claims.