What's Happening?
The California Civil Rights Department (CRD) has released preliminary templates for the 2025 pay data reporting requirements, which will affect private employers with 100 or more employees or workers hired through labor contractors. The new requirements, mandated
by Government Code section 12999 and Senate Bill 1162, include additional data fields such as exemption status, employment type, and total annual weeks worked. These changes aim to provide more detailed insights into workforce demographics and compensation practices. Employers are encouraged to prepare for the May 13, 2026, reporting deadline by reviewing and updating their data collection processes.
Why It's Important?
The updated reporting requirements reflect California's ongoing efforts to enhance transparency and equity in workplace compensation. By requiring more detailed data, the CRD aims to identify and address potential disparities in pay and employment practices. This initiative could lead to increased scrutiny of employer practices and potentially influence broader policy changes at the state and national levels. Employers will need to ensure compliance with the new requirements, which may involve significant adjustments to their data management and reporting systems.
What's Next?
Employers are advised to begin preparing for the new reporting requirements by assigning internal responsibilities, reviewing exemption classifications, and standardizing employment type definitions. They should also ensure their systems can accurately report total weeks worked, including paid leave. As the reporting deadline approaches, companies may seek legal and technical guidance to ensure compliance and avoid potential penalties. The CRD's focus on detailed pay data could lead to further regulatory developments aimed at promoting workplace equity.
