Understanding California Pay Data Reporting: What Employers Need to Know
As of 2025, California continues to enforce stringent pay data reporting requirements to promote pay equity and transparency in the workplace. These mandates, governed by the California Civil Rights Department (CRD), require specific employers to submit detailed reports on employee compensation and demographics. Here's what you need to know to ensure compliance this year.
Key Reporting Deadlines
Reporting Year: 2024
Submission Deadline: May 14, 2025
Reporting Portal Open: February 3, 2025
Who Must Report?
Under California law, the following employers are obligated to submit pay data reports:
Private Employers with 100 or More Employees:
Criteria: Employers with 100 or more employees, including those working outside California, must report if at least one employee is based in California.
Report Type: Payroll Employee Report
Private Employers with 100 or More Workers Hired Through Labor Contractors:
Criteria: Employers with 100 or more workers hired through labor contractors in the prior calendar year, with at least one worker based in California.
Report Type: Labor Contractor Employee Report
It's important to note that these reports are distinct; employers meeting both criteria must submit separate reports for payroll employees and labor contractor employees.
What Information Must Be Included?
Employers are required to provide comprehensive data, including:
Employee Demographics: Information on race, ethnicity, and sex.
Pay Data: Mean and median hourly rates, categorized by job category, pay band, race/ethnicity, and sex.
Hours Worked: Total hours worked by each employee within the reporting year.
For the 2024 reporting cycle, the CRD has introduced a new race/ethnicity category: "Middle Eastern or North African" (MENA). Additionally, the "Two or More Races" category has been updated to "Multiracial and/or Multiethnic."
How to Submit Your Report
All reports must be submitted through the CRD's Pay Data Reporting Portal. The portal opened for the 2024 reporting year on February 3, 2025, and can be accessed here. Employers are required to register, provide necessary business information, and upload the relevant data using the provided templates.
Consequences of Non-Compliance
Failure to submit the required pay data reports by the May 14, 2025, deadline can result in significant penalties. The CRD may seek a court order to enforce compliance, and employers may be liable for associated costs and civil penalties.
Best Practices for Compliance
Early Preparation: Begin compiling necessary data well before the submission deadline.
Accurate Data Collection: Ensure that demographic and pay information is precise and up-to-date.
Utilize CRD Resources: Refer to the CRD's Handbook and User Guide for detailed instructions.
Consult Legal Counsel: Seek advice to navigate complex reporting requirements and ensure full compliance.
By staying informed and proactive, employers can successfully navigate California's pay data reporting requirements, contributing to a more equitable workplace for all.
Contact us today to learn how we can support your organization’s compliance and pay equity initiatives!
