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California requires pay data reporting to guard against discrimination

| Oct 8, 2020 | wage & hour law

The state of California has picked up where the Equal Employment Opportunity Commission (EEOC) left off — specifically with regard to pay reporting requirements for employers. The EEOC decided to stop efforts to collect “Component 2” pay data. Legislators in California stepped in and passed a pay reporting bill, which Governor Newsom signed.

The state senate bill, SB 973, is meant to help ensure wage parity for women and minorities. The required data reporting will help identify instances of wage and employment violations based on race, ethnicity and sex. Covered employers are now required by law to submit an annual report to the California Department of Fair Employment and Housing.

The collected data examines specific jobs within a range of annual salaries. The selection is varied enough to cover many types of careers, and very few professions appear overlooked in the data collection process.

The compiled data will likely make it easier to identify and analyze unfair wage and hour practices on the part of employers. If something seems amiss, an investigation may be necessary to protect the rights of workers.

California’s proactive stance on employment data collection sends a message to employers that they must identify and remedy discriminatory wage practices.

However, if you believe that your employer is discriminating against you or otherwise failing to pay you what you are owed, it is important to understand that waiting for the state to act may not be the best course of action. An overburdened government tends to move rather slowly. An experienced wage and hour attorney can assess your specific situation and help you determine the most expedient path forward.