On Sept. 30, Gov. Gavin Newsom signed SB 1237. The new legislation raises the maximum penalty for a subsequent failure to file a required pay data report to $1,000 per employee, up from $200. The maximum penalty for an initial failure remains $100 per employee.
The law generally applies to private employers with at least 100 payroll employees and private employers with at least 100 workers hired through labor contractors. For an employer with 1,000 reportable employees, a second missed filing could carry a maximum $1 million penalty.
The higher cap takes effect Jan. 1, 2027, making the May 12, 2027, filing deadline the first filing subject to the new maximum pay data reporting penalty.
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