Human Resources

California’s New Pay Transparency Law Kicks in May 2023

The California pay data reporting law requires information to be sent to state officials starting in May 2023. Essentially, the law requires employers to provide a comparison of pay rates between different race/ethnicity and gender groups.


Applying to employers with 100 or more workers, the law requires companies to submit a pay data report, separate from an EEO-1, and include several pieces of information, primarily related to race, sex and ethnicity. (The law also extends reporting requirements to cover contractor employees and requires labor contractors to provide the information to employers to meet reporting obligations.)


The report must be sent on or before the second Wednesday of May each year. This year, the law requires the information to be sent to the California Civil Rights Department on or before May 10, 2023.


The California pay data reporting law must include:

The number of employees by race, ethnicity and sex in each of the following job categories:

Executive or senior-level officials and managers
First or mid-level officials and managers
Sales workers
Administrative support workers
Craft workers
Laborers and helpers
Service workers


The report also must provide:

The number of employees by race, ethnicity and sex whose annual earnings fall within each of the pay bands used by the U.S. Bureau of Labor Statistics in the Occupational Employment Statistics survey
The median and mean hourly rate — for each combination of race, ethnicity, and sex — within each job category


Additionally, employers must create a “snapshot” that tallies the individuals in each job category by race, ethnicity, and sex, employed during a single pay period of the employer’s choice between Oct. 1 and Dec. 31 of the “reporting year.”


Employers found in violation of California’s pay data reporting law can face fines for noncompliance. Find more information on the state legislature’s website.


Meanwhile, California has provided reporting resources for employers, which include:

Pay data reporting portal
User guide
Excel templates
CSV templates
Pay data reporting results
Pay data in the news

Be Audit-Secure!


Lisa Smith, SPHR, SCP
EEOC Certified EEO Investigator

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The post California’s New Pay Transparency Law Kicks in May 2023 appeared first on Your HelpDesk for HR .

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