New California Pay Data Law

By March 31, 2021 all companies in California with 100 or more employees are required to submit their pay data to the state. This new law is the first step in forcing pay equity and avoiding discrimination amongst employees of larger businesses in the state and could impact your pay as a California worker. If you believe that you have been discriminated against at work or are receiving less pay than others because you belong to a protected class, it is important that you speak with an experienced California employment law attorney as soon as possible about your case today.

California Pay Data Law

The new law, also known as SB 973, requires all private employers with one hundred or more employees in the state of California to submit their pay data report to the state Department of Fair Employment and Housing that contains information about their employees’ race, ethnicity, and gender in various job categories along with their wage rate or salaries. This law is the state equivalent of the federal requirement for private companies of the same size that must file an annual Employer Information Report (EEO-1). It is important to note that this new law applies specifically to private employers, as public employee salaries are already accessible for review.

The Importance of Private Pay Data Information

Submitting and review of private companies’ pay data is critical in ensuring fair pay practices for employees. Given the nature of the data required under this new law, the state can check whether a company is engaging in any disparate pay practices based on gender, race, or ethnicity. Unfortunately, the law does not specify any specific penalties for companies found engaging in discriminatory pay practices, but future amendments to the law could include potential consequences from the state. As an employee, if your employer is found to have engaged in discriminatory pay practices based on their data, you may have a valid employment law claim against them for damages. An experienced employment law attorney will be able to review the details of your case and provide you with more information.

This law is the latest in a number of legislative acts in California meant to encourage equity and diversity among its businesses. Another recent law geared at addressing inequality in California businesses requires that Boards of Directors in publicly held companies now have a certain percentage of members be people of color or from underrepresented communities, such as a member of the LGBTQ+ community. Boards with four or fewer members must have one diverse person, five to eight members must have two, and boards with nine or more members must have at least three directors from an underrepresented community.

Call or Contact a Lawyer Today

Do you have questions about potential pay inequality at your workplace? If so, you need to speak with a knowledgeable California employment law attorney in your area today to learn more about your legal options as an employee.