Similar to federal EEO-1 reporting, private employers in California with 100 or more employees must submit pay data to the Civil Rights Department (CRD) by the second Wednesday in May each year.  The data must include the number of employees by race, ethnicity, and sex within ten job categories, within U.S. Bureau of Labor Statistics pay bands, and the total number of hours worked by each employee counted within each pay band during a reporting year.  Mean and median hourly pay rates by race, ethnicity, and sex are also required.  The data is required to enable the CRD to enforce civil rights laws.

Commencing on January 1, 2026, Senate Bill 464 will amend Government Code section 12999 to require that demographic information gathered by an employer or labor contractor for the purpose of submitting the pay data report be kept separately from personnel records.  In addition, the failure to report data will result in mandatory penalties which will be imposed at the request of the CRD.  The penalties are $100 per employee for the first violation and $200 per employee for subsequent violations.  Beginning on January 1, 2027, the number of job categories included will be expanded to 23 to allow for more precise reporting. 

Employers should make appropriate modifications to their record keeping practices and prepare to meet the deadlines.  Employers should also be aware that the pay data reporting requirements include employees hired through labor contractors or professional employer organizations. 

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