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ARTICLE · 21 DECEMBER 2020

California Issues New Guidance Regarding Employer Pay Data Reporting Requirements

Cooley LLP
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On November 23, the California Department of Fair Employment and Housing (DFEH) issued updated guidance clarifying employers' reporting responsibilities under newly enacted California Senate Bill 973.

United StatesEmployment and HR
Cooley LLP
Cooley LLP
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On November 23, the California Department of Fair Employment and Housing (DFEH) issued updated guidance clarifying employers' reporting responsibilities under newly enacted California Senate Bill 973. This guidance provides answers to many key questions that were left unanswered by the law, which was signed by Governor Gavin Newsom on September 30.

What is SB 973?

SB 973 requires large employers to report certain pay and other data to the DFEH (which will enforce SB 973) by March 31, 2021, and annually thereafter. In enacting this legislation, the legislature found that despite "significant progress made in California in recent years to strengthen California's equal pay laws, the gender pay gap persists, resulting in billions of dollars in lost wages for women each year in California. Pay discrimination is not just a women's issue, but also harms families and the state's economy." Recognizing that there are legitimate and lawful reasons for paying some employees

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