As employers deal with all the changes at the federal level, they should also be mindful of potential changes at the state level, specifically in California. As we see companies evaluating the type of data they are collecting from their employees in light of the many executive orders issued by the new administration, we wanted to provide an update on a new bill that has been introduced in California that could result in changes to the California Pay Data filing report in 2026.
State Sen. Lola Smallwood-Cuevas (Democrat, 28th Dist.) introduced Senate Bill 464 this legislative session, which would expand the filing requirements for the annual reports filed with the Civil Rights Department (CRD). If enacted, key changes for the 2026 reporting cycle would include:
Additional data: Employers would be required to report on sexual orientation. Currently, employers are required to report on the number of employees by race, ethnicity, and sex. The statute would be expanded to include reporting by sexual orientation. The bill directs employers to collect and store any demographic information for pay data purposes separate from the employees’ personnel records. Information regarding an employee’s sexual orientation would be collected only if “voluntarily disclosed” by the employee.
Make it public: The bill would require the CRD to publish the pay data reports filed by private employers on their websites, so long as the publication of the data is reasonably calculated to prevent the...
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