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ARTICLE · 27 JANUARY 2021

California's New Pay Equity Data Reports Due March 31

Schnader Harrison Segal & Lewis LLP
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Last fall, late on the final day he was permitted to sign legislation under California law, Governor Gavin Newsom affixed his signature to SB 973, a law that imposes on covered employers a significant employee data reporting requirement.

United StatesEmployment and HR
Scott Wenner
Scott Wenner
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Last fall, late on the final day he was permitted to sign legislation under California law, Governor Gavin Newsom affixed his signature to SB 973, a law that imposes on covered employers a significant employee data reporting requirement. All private employers who are required to prepare and file annual EEO-1 forms (Employer Information Report) and employ any employees in California must file the new reports annually with the Department of Fair Employment & Housing (DFEH).   This new law has been codified as section 12999 of the California Government Code. 

The data reporting requirement purportedly is intended to help achieve equal pay for women and persons of color by mandating the collection and submittal to the DFEH by covered employers of data that can be used by the DFEH "to investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful by [the Fair Employment & Housing Act]." (SB 973, Sec. 2(f)(3)). Its premise is that potential

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