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ARTICLE · 05 OCTOBER 2026

California Raises The Stakes On Pay Data Reporting Failures

Jackson Lewis P.C.
Jackson Lewis P.C.
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Jackson Lewis P.C.

Jackson Lewis P.C.

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California has significantly increased penalties for employers who repeatedly fail to file required pay data reports, with fines jumping from $200 to $1,000 per employee for second violations. The new law also mandates more granular reporting using 23 occupational categories instead of 10, requiring employers to update their systems before the May 2027 deadline.

United StatesEmployment and HR

Governor Newsom has signed Senate Bill (SB) 1237, significantly increasing the penalties for employers who repeatedly fail to file California’s required pay data reports.

Under the new law, first-time failures remain subject to penalties of up to $100 per employee. But for subsequent failures, the maximum penalty jumps from $200 to $1,000 per employee—a fivefold increase.

Miss once, pay a little. Miss twice, pay a lot. A company with 500 employees that misses a second filing deadline could face up to $500,000 in civil penalties—compared to $100,000 under the prior cap. The California Civil Rights Department (CRD) must still obtain a court order to impose penalties, but the dramatically higher ceiling gives the agency considerably more leverage in enforcement actions.

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