California enacted its Pay Data Reporting law in 2020 as a response to the Trump Administration ordering the EEOC to halt its annual pay data collection. The California law largely mirrored the federal law but instead required private employers who must file an annual Employer Information Report (EEO-1) pursuant to federal law to submit the annual data to the California Department of Fair Employment and Housing (DFEH). It covered the same size of employers (100+ employees that already file a form EEO-1), required the same data disclosures, including the number of employees by race, ethnicity, and sex in specified job categories, and even allowed California employers to submit to the DFEH the same or substantially similar data they submitted to the EEOC in the EEO-1 form.

California Senate Bill 1162, however, diverges from federal law and places additional requirements on California employers. The bill expands the law’s scope to cover not only employers that already file a form EEO-1 but all employers with 100 or more employees, with at least one California employee. It also requires these employers who hire workers through labor contractors within the prior calendar year to submit additional pay data reports. The bill includes additional pay data disclosure requirements to report the median and mean hourly rate based on race, ethnicity, and sex within each job category. Significantly, employers will no longer be able to submit an EEO-1 report to the DFEH to comply with the...

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