California Mandates Reporting of Pay Data by Race and Gender – SB 973

Last Updated on November 24, 2020 by bigfish-admin

On September 30, 2020, Governor Gavin Newsom signed SB 973 into law in an effort to address race and gender-based pay gaps in California. SB 973 enacts massive pay reporting requirements for employers. 

SB 973 requires California employers with 100 or more employees to submit an annual pay data report to the Department of Fair Employment and Housing (DFEH). Employers must submit this report beginning on March 31, 2021. The report is required to include compensation and hours worked for all employees by defined:

  • job categories 
  • gender
  • race
  • ethnicity

SB 973 further permits state agencies to identify patterns of wage disparities and allow for targeted enforcement of equal pay and discrimination laws. Notably, the law permits the DFEH to receive, investigate, conciliate, mediate, and prosecute complaints alleging discriminatory pay practices. 

Action Items:

California employers should prepare for this law immediately, as 2021 is rapidly approaching.

  • Conduct internal audits of pay practices, focusing specific attention on potential gender and/or race pay gaps.
  • Self-correct any pay gaps and mitigate risk of discrimination and equal pay claims. 
  • Communicate all upcoming changes to employees by letting them know of changes to existing policies or new policies. 

Big Fish will continue to report on further developments to this law and other related legislation nationwide. Information contained in this publication is intended for educational or informational purposes only and does not constitute legal advice or opinion, nor is this a substitute for the professional judgment of an attorney. For additional assistance with how to prepare to comply with these new requirements, contact Big Fish Employer Services.

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