With pay data reports for 2025 due May 13, 2026, California-based private employers’ attention is starting to turn to compliance with the annual reporting obligation. Senate Bill 464 (2025) changed the pay data reporting obligations, introducing new requirements effective this year concerning liability and information storage, and in new job categories for 2027. In complying with reporting obligations this year, and preparing for reporting next year, employers should consider the following changes imposed by the bill.
Background
Since 2021, California has required covered employers (employing 100 or more employees, including workers employed through labor contractors) to submit annual pay data reports to the California Civil Rights Department (“CRD”). The pay data report includes employee counts by race, ethnicity, and sex across ten specific job categories, employee earnings by pay bands, and both the mean and median hourly pay rates by race, ethnicity, and sex. Pay data pertaining to labor contractor employees must also be reported on a labor contractor employee report (with information supplied by the labor contractors) if the work performed by the labor contractor employees is within the usual course of business of the employer. A failure to submit such annual pay data reports to the CRD resulted in potential discretionary penalties of $100 per employee and $200 per employee for repeat violations.
Mandatory Imposition of Civil Penalties
Prior law stated that a court “...
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