Employers of 100 or more employees to report to the California Civil Rights Department pay and hours-worked data by establishment, pay band, job category, sex, race, and ethnicity. For 2023, the pay data reports are due by May 10. This requirement applies to employers even if they are based outside of California, but have one employee (or even one employee hired through a labor contractor such as an staffing agency) working in California or assigned to an establishment in California.
In Senate Bill 973, passed in 2020, the California Legislature found that “[d]espite significant progress made in California in recent years to strengthen California’s equal pay laws, the gender pay gap persists, resulting in billions of dollars in lost wages for women each year in California. …Although there are legitimate and lawful reasons for paying some employees more than others, pay discrimination continues to exist, is often ‘hidden from sight,’ and can be the result of unconscious biases or historic inequities.”
By requiring large employers to report pay data annually the Legislature sought to encourage these employers to self-assess pay disparities along gendered, racial, and ethnic lines in their workforce and to promote voluntary compliance with equal pay and anti-discrimination laws.
In addition, Senate Bill 973 authorized CRD to enforce the Equal Pay Act (Labor Code section 1197.5), which prohibits unjustified pay disparities. Moreover, the Fair Employment and Housing Act (Gov....
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