Pay Equity Co-Chair on California’s New Pay Data Collection Requirements

California Gov. Gavin Newsom recently signed a law that requires employers to report their pay information to the state. The legislation authorizes a collection of wage data, broken down by race, sex, ethnicity and job category, and authorizes the state’s Department of Fair Employment and Housing to prosecute complaints alleging unfair pay practices. In an interview with Bloomberg Law, Cheryl Pinarchick explains the similarities and differences to the EEOC’s annual workforce demographic survey. She says, “although the California law lets employers add explanatory notes, the state still seems likely to investigate employers based on a cursory data review where there’s a lawful justification for pay differences.”

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