Labor
Civil Rights Department
SB 1237 raises repeat penalties for employers that miss California pay-data reports and requires annual reporting-volume disclosure.
The law strengthens enforcement of employer pay-data reporting, which tracks pay and workforce demographics by race, ethnicity, sex, job category, and earnings. It also adds a public aggregate measure of reporting compliance while protecting individual business and employee data.
What the law does
- Raises the maximum penalty for a subsequent failure to file a required pay-data report from $200 to $1,000 per employee.
- Requires the Civil Rights Department to annually publish the total number of pay-data reports submitted in an aggregate format that does not identify a business or person.
- Keeps the existing $100-per-employee maximum penalty for an initial failure to file and allows courts to assign appropriate penalties to labor contractors that fail to provide needed data.
Who it affects
- Private employers with 100 or more employees that must file annual pay-data reports.
- Private employers with 100 or more employees hired through labor contractors that must file separate contractor-employee reports.
- Labor contractors that must provide pay data to client employers.
- The Civil Rights Department, which enforces reporting requirements and publishes aggregate submission totals.
Context
The changes become operative on January 1, 2027.