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In September 2020, the California legislature passed SB 973 requiring private employers with 100 or more employees to submit a pay data report to the California Department of Fair Employment and Housing (DFEH) by March 31st of each year. Although the law requires that employers submit pay data reports by March 31st of each year, the DFEH has published on its website that 2021 pay data reports are due by April 1st for 2022.

Employers required to comply with this law include any private employer with 100 or more employees that are required to file a federal Employer Information Report (EEO-1), regardless of where that company is based, so long as it has one or more employees in California. This means if the employer is required to file a federal EEO-1 report and has just one employee working remotely in California, the employer must also submit a pay data report to the California DFEH by April 1, 2022. If a company is based outside of California, it may submit the data for all its employees or only the California employees. Employers should seek legal advice from a California-licensed employment law attorney to determine whether it is advisable to submit pay data for non-California employees.

The report must include a breakdown of employees by sex, race, and ethnicity with each employee’s “job category” based on ten broadly defined job categories. Employee compensation is categorized in the 12 pay bands used by the United States Bureau of Labor Statistics in its Occupational Employment and Wage Statistics survey, ranging from “$19,239 and under” to “$239,200 and over” for 2022. Employers must also report the total hours worked by each employee and the total income for the year as reported on the W-2.

DFEH has provided a user guide, templates, and instructions on its website and answers to frequently asked questions. The data must be compiled on an Excel file, CSV file, or by completing the online forms and submitted through the DFEH portal. Employers that have questions about their coverage under the law or how to compile the data and submit the report to DFEH can contact the California Legal Services team at CAInfo@employerscouncil.org.