Legis
Labor
SB 1237, Chapter 1019, Statutes of 2026 · Wednesday 30 September 2026

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.