What happened?

On October 13, 2025, Governor Gavin Newsom signed Senate Bill (SB) 464 into law, strengthening California’s pay equity and transparency rules.

Overview:

The law amends Government Code §12999 and introduces stricter reporting obligations, mandatory penalties, and expanded job categories to help address wage disparities for private employers with 100 or more employees, including those hired through labor contractors.

Summary of changes:

Effective January 1, 2026

• Data Storage: Demographic data (race, ethnicity, and sex) and must be kept separate from personnel records.
  • Deadline: May 13, 2026 (pay data reporting deadline).
  • What is covered: covers all data connected to the annual pay reporting requirement.
  • Employer Recommendation: Employers and covered labor contractors should consider keeping pay data separate from regular personnel files to support compliance and data security.

• Penalties for Violations Include:
  • $100 per employee for first violation; $200 for repeat violations.
  • Penalties may apply to labor contractors that fail to provide data.

Effective January 1, 2027

• Expanded Job Categories: Increase from 10 to 23 SOC-based categories, including Chief Executives, Computer & Mathematical Occupations, Health Care Practitioners, and more.
  • What Changed? Pay reporting will no longer rely on EEO-1 categories; instead, all employees must be classified into one of twenty-three job categories.
  • Employer Recommendation: Due to the major changes in employee classification, employers and labor contractors are encouraged to start reviewing current classifications, compare them with the new twenty-three categories, and update their systems accordingly.
  • Click here to view the new categories:

• Employers must reassign applicable roles to the appropriate categories.

Source References

• California SB 464 – Employer pay data

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