California Employers Face Stricter Pay Data Reporting Requirements Under New Law

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Governor Gavin Newsom has signed Senate Bill 464 into law, relating to employer pay data.

What the Law Currently Requires

Under existing law, private employers with 100 or more employees must submit an annual pay data report to the Civil Rights Department (CRD) showing the number of employees by race, ethnicity, and sex in ten job categories, along with their median and mean hourly rates and total hours worked. Failure to report allows CRD to seek a compliance order and civil penalties.

Key Updates Under SB 464

SB 464 introduces two major rounds of changes:

1. Starting in 2026:

Employers must now collect and store demographic data separately from personnel records.
A court is now required “to impose a civil penalty against an employer that fails to file the report if requested to do so by the department.”

2. Beginning January 1, 2027:

The law expands job categories on 23 to provide a more accurate picture of workforce representation across occupations, including:
- Business and Financial Operations
- Computer and Mathematical
- Community and Social Science
- Legal
- Educational Instruction and Library
- Health Care Support
- Food Preparation and Serving Related
- Building, Ground Cleaning, and Maintenance
- Farming, Fishing, and Forestry
- Construction and Extraction
- Transportation and Material Moving