New California Pay Data Reporting Law Echoes Former EEOC Requirement

October 02, 2020

A new law requires California employers to report the total number of U.S. employees and total number of hours worked for 12 pay bands (pay ranges) and 10 EEO-1 job categories, by race, ethnicity and sex, by March 31, 2021.

The CA pay data report is similar to the old EEO-1 pay data requirement that was collected in 2019.  It applies to employers with 100 or more employees in the state.  An employer may comply with the new law by submitting its EEO-1 report “containing the same or substantially similar pay data information required under [the new California law].”

Employers can use a single pay period “snapshot” of their workforce for reporting purposes.  Employers can choose any pay period between October 1 and December 31 of the reporting year.  Full- and part-time employees are included.

Employers can use total earnings on an employee’s W-2 to determine which pay band they should be in, and report the total number of hours worked by each employee counted in each pay band during the “Reporting Year.”

Multi-establishment employers must submit a report for each establishment and a consolidated report that includes all employees.

Takeaway:  The new law is intended to allow "for targeted enforcement of equal pay or discrimination laws, when appropriate" and other states are likely to follow California’s lead next year.