California’s New Pay Transparency Law Kicks in May 2023

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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
    • Professionals
    • Technicians
    • Sales workers
    • Administrative support workers
    • Craft workers
    • Operatives
    • 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
  • FAQs

Be Audit-Secure™!


Lisa Smith, SPHR, SCP
EEOC Certified EEO Investigator

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Certified EEO Investigator (EEOC)

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