The State of California Civil Rights Department (“CA CRD”) is currently conducting its fifth annual pay data filing, with a due date of May 14, 2025. This requirement, established in 2021, emerged after the Equal Employment Opportunity Commission (“EEOC”) stopped collecting pay data as part of the EEO-1 report. To bridge this gap, California passed Senate Bill 973 in 2020, mandating private employers with at least 100 employees nationwide and at least one employee in California to submit annual pay data reports, which include W-2 wages.
Over the years, the reporting requirements have evolved. Initially, only payroll employees were included in the reports, but starting in 2023, employers also had to submit a separate Labor Contractor Report for contract workers performing work for their company. While the first year allowed for unknown demographic data in this report, beginning in 2024, employers were required to provide complete demographic details. Additionally, new fields were introduced in 2024, requiring employers to report whether an employee worked remotely and whether they were a California resident.
For the 2025 filing, employers can now classify employees under the Middle Eastern and North African (“MENA”) racial category if they already collect this data. Previously, individuals from this background were categorized as “White.” This update aligns with proposed federal changes under the Office of Management and Budget (“OMB”)’s Statistical Policy Directive No. 15, though federal implementation remains uncertain. As the reporting process continues to develop, California employers must stay updated on evolving requirements to maintain compliance.
If you have any questions regarding California’s Pay Day Data Reporting requirements, please contact us at info@mnklawyers.com
