The Civil Rights Department currently requires private employers with 100 or more employees to file an Annual Pay Data Report with the Civil Rights Department. Existing law requires these reports to include the number of employees by race, ethnicity, and sex across 10 federal job categories, along with pay-band placement, median and mean hourly rates, and hours worked. Employers with 100 or more labor-contractor employees must also file separate reports. Courts had discretion to impose penalties if employers failed to comply.
SB 464 makes several significant changes. Employers must now keep demographic information collected for reporting separate from personnel records to ensure confidentiality. Beginning January 1, 2027, employers must also use 23 detailed occupational categories, such as executives, managers, educators, healthcare, construction, production, and transportation, instead of the current 10 broad Equal Employment Opportunity groupings. Courts must impose penalties when the Civil Rights Department requests them: $100 per employee for the first failure to file and $200 per employee for each subsequent failure. Labor contractors that withhold necessary data also face penalties.
Employers with 100 or more employees must, beginning January 1, 2027, map positions to the new 23-category framework, keep demographic reporting data separate from personnel files, and prepare for mandatory penalties if they miss a filing.
(SB 464 amends Section 12999 and adds Section 12999.1 to the Government Code.)