By Stacey Sommerhauser, SPHR, PHRca, SHRM-SCP
California’s pay data report is changing, and so is the cost of missing it. If you have 100 or more employees, the 2027 filing deserves a head start.
What’s changing. Since 2020, the report has sorted employees into 10 EEO-1 job categories. However, as we shared with clients in 2025, SB 464 replaces those with 23 categories based on the federal Standard Occupational Classification (SOC) system. The first report using them is due May 12, 2027, and covers calendar year 2026. In other words, the data is being created right now, and you will need to classify your 2026 workforce under a system most employers have never used.
Why it matters. SB 464 made court-imposed penalties mandatory when the Civil Rights Department (CRD) seeks them. SB 1237, signed in September, goes further. A first failure to file stays at up to $100 per employee, but a repeat failure can now reach up to $1,000 per employee, up from $200. For a company with 200 California employees, that is up to $200,000. The CRD is already pursuing employers that skipped filings.
One more reminder. Since January 1, 2026, demographic information collected for pay data reporting must be stored separately from the personnel file, much like the Form I-9. Check your new hire paperwork.
Why start now. Titles don’t always tell the story. A “Coordinator” or “Lead” could land in more than one category depending on actual duties. That takes judgment and manager input, and it’s much easier to work through before year end than in the spring rush.
Where to find help. The CRD maintains a Pay Data Reporting page with the reporting portal, a filing handbook, Excel templates, and user guides. Its Frequently Asked Questions page is the best place to look for answers on filing requirements, penalties, and labor contractor reporting. You can also reach the CRD pay data team directly at paydatareporting@calcivilrights.ca.gov. The 23 job categories themselves are listed in the text of SB 464.
What You Should/Should Not Do:
- Do: Inventory every California job title with a brief description of actual duties.
- Do: Map each position to the SOC categories, and document your reasoning.
- Do: Confirm your payroll/HRIS can store the new classification and report hours and pay data.
- Do: Store demographic data apart from personnel files.
- Do: Ask labor contractors, if you use them, to confirm they can provide their data on time.
- Do: Calendar the May deadline and finish an internal review two weeks early.
- Do not: Assume your current EEO-1 categories will carry over.
- Do not: Wait until spring 2027 to start. The deadline falls on the second Wednesday in May, and a missed filing now carries mandatory penalties.
Bottom Line:
The 2027 report is the first to use 23 job categories and the first subject to higher repeat-failure penalties. Classifying your 2026 workforce now means fewer surprises, better data, and no scramble in May.
Please contact your Silvers HR Consultant if you have any questions.