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California Pay Data Reporting

California Pay Data Reporting (SB 973) requires large employers to report pay and specific other data to the DFEH (Department of Fair Employment and Housing) by March 31, 2021, and annually after that.

California Pay Data Reporting

What is the purpose of the legislation?

DFEH’s strategic vision is a California free of discrimination.

The California legislature found that the gender pay gap persists in California, despite progress to strengthen California’s equal pay laws in recent years.

The legislature concluded that the reason “pay discrimination continues to exist, is often ‘hidden from sight,’ and can be the result of unconscious biases or historic inequities.”

Employers’ pay data reports will allow DFEH to more efficiently identify wage patterns and effectively enforce equal pay or anti-discrimination laws when appropriate.

What companies must file the report?

Any private employer of 100 or more employees anywhere in the U.S. (with at least one employee in California) and is required to file an Employer Information Report (EEO-1 Report).

What employees are included in the pay report?

Employers must include their employees assigned to California establishments and/or working within California.

In addition, employers may include their other employees located outside of California.

The employer must select a single pay period between October 1 and December 31 to create a “snapshot” of the employees reported in the Pay Data Report.

The report

The report groups employees by job category, pay band, race/ethnicity/sex.  

The report calculates the total number of employees and the total hours worked by the employees in each group.

For employers with more than one establishment, employers must organize and report their data by establishment.

How do employers submit their pay data reports to DFEH?

Employers must use the DFEH’s online portal to submit data. For example, an employer will submit their pay data report by uploading an Excel or .CSV file using DFEH’s template.  

How can PayAnalytics help employers in the preparation of Pay Data Reporting?

Our solution supports California DFEH reporting and quickly generates a report ready to be uploaded into the DFEH’s portal.

PayAnalytics helps companies with the preparation of their Pay Data Reporting.

PayAnalytics can help with pay equity analysis based on the data submitted in the report.  Our solution highlights possible problem areas and issues before reporting this data to the DFEH.

Figure 1 - Median salary by Job Category and Gender - From PayAnalytics reporting tool

Figure 1, a graph from our reporting tool, portrays median salary by job category and gender.   The report illustrates the salary difference. The summary statistic table shows the difference between the demographic groups we choose to look at in each graph. For example, the median pay of women in the laborers’ category is 9,6% lower than the median pay of the men in that category.

Figure 2 - Median salary of laborers by Gender and Race - From PayAnalytics reporting tool

Figure 2 shows the median pay in just the laborer’s job category by gender and race. From the graph and in the summary statistics table, we see a difference between the median salary of Asian men and women of more than 25%. A difference only revealed when adding race as a variable.

The PayAnalytics software helps employers address pay gaps and suggest salary changes to the employees primarily attributable to the pay gap. The software also addresses if the pay gap is attributable to gender, race, or intersectionality between these or other demographic groups.

Do not hesitate to contact us for further inquiries or book a meeting with us to demonstrate the software.

More information on PayAnalytics:

More information about the law and filing requirements:

California Pay Data Reporting Portal

California Pay Data Reporting User Guide

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