Enacted to promote pay equity and combat wage discrimination, California's Pay Data Reporting requirement targets employers with 100 or more employees who are also required to file a federal EEO-1. The data — wages broken down by job category, gender, race, and ethnicity — enables the state to analyze potential pay disparities.
What Is California Pay Data Reporting?
California's Civil Rights Department (CRD) collects employer pay data each year to identify wage disparities and enforce equal pay laws. The data includes wage information broken down by job category, gender, race, and ethnicity.
What's New for This Year
Mean & median hourly rates
Under Senate Bill 1162, employers are mandated to compute and report the mean and median hourly rate of their payroll employees and/or labor contractor employees. This must be done for each establishment and broken down by pay band, job category, race/ethnicity, and sex.
Labor Contractor Employee Reports
Previously only Payroll Employee Reports were required. Now employers must also report any Labor Contractor Employees if they hired more than 100 throughout the course of the year.
Labor contractor penalties
If a contractor does not provide the required information to the employer, the contractor can face penalties for not cooperating.
Who Must File a Pay Data Report?
For California Pay Data Reporting, private employers must file if they meet the following criteria:
- Employment size: Employers with 100 or more employees, including full-time, part-time, and temporary employees.
- Federal reporting obligation: Employers required to file a federal EEO-1.
- Doing business in California: At least one employee in California, plus the above criteria.
Will California Release Employer Pay Data Information?
Per Government Code section 12999, the Labor Commissioner's Office, CRD, and their staff are forbidden from publicly disclosing individually identifiable information acquired under their authority before initiating an investigation or enforcement action under § 1197.5 of the Labor Code or § 12940 of the Government Code.
Government Code section 12999(h) further deems any individually identifiable information provided to CRD as confidential and not subject to release under the California Public Records Act. The CRD will maintain employer records for no less than ten years.
When Is the Deadline to Submit Pay Data Reports?
Per Government Code section 12999(a), the due date for submitting pay data reports to CRD falls on the second Wednesday of May every year. For Reporting Year 2025, that's May 14, 2026.
Should the CRD not receive the necessary report by the due date, it has the authority to pursue a court order compelling the employer to comply with the pay data reporting regulations. The CRD may recoup costs and the court may levy a civil penalty.
Are Employers Able to Request an Extension?
If an employer wishes to request an enforcement deferral period for a Labor Contractor Employee Report, they must register on the CRD portal and submit the required form by the May deadline. CRD will exclusively accept requests submitted through this portal — submissions made via email or phone are disregarded. Third parties (including PEOs) cannot submit on an employer's behalf.
Penalties for Failing to File
With the enactment of Senate Bill 1162, additional penalties apply to employers who neglect to submit required pay data reports. The CRD can levy civil penalties of:
- $100 per employee for failing to file a required report.
- $200 per employee for any subsequent failure.
Labor contractors that fail to provide mandatory pay data to a client employer can also be assessed these penalties. The CRD can also recoup expenses incurred in any enforcement action per Gov. Code § 12999(f).
What Are the Different Types of Pay Data Reports?
Currently there are two different types of California Pay Data Reports:
- Payroll Employee Reports
- Labor Contractor Employee Reports
What Is a Snapshot Period and How Do Employers Pick One?
The "Snapshot Period" refers to a specific pay period falling between October 1 and December 31 of the Reporting Year, as defined in Gov. Code § 12999(b)(4). Employers have flexibility to select any single pay period within this range. The Snapshot Period is used to identify the employees included in the Payroll Employee Report.
Some employers (especially with bi-weekly or monthly payments) wonder how to choose. The key: an employee's inclusion is not determined by whether they were paid during the Snapshot Period, but rather whether they were employed during that time.
Edge Cases & Frequently Asked Questions
Should partial-period employees be included?
Yes — even if the employee was hired, resigned, or terminated mid-period, they must be reported if they worked at any point during the Snapshot Period.
What about telework from outside California?
Employees who telework from a residence outside California but are assigned to a California establishment may still be classified as California employees and must be included.
What if an employee lives in California but works outside?
An employee must be included only if they also work in California. An employee who regularly teleworks from California must be reported.
How do I determine an establishment's "Major Activity"?
Provide a description specific enough to recognize the industry and product or service offered. If an establishment is involved in multiple activities, focus on the activity employing the highest number of workers. Use the North American Industry Classification System (NAICS) for guidance.
