As predicted, on September 30, 2020, California Governor Newsom signed SB 973 into law. SB 973 requires private employers with 100 or more employees to report pay data to the Department of Fair Employment and Housing by March 31, 2021, and by March 31 each year thereafter, for specified job categories by gender, race, and ethnicity. For details on the reporting requirements, click here.

Takeaways for Employers

With this new measure to further close the pay gap, we recommend employers with 100 or more employees prepare now, as follows:

• Evaluate the need for additional systems to track and maintain the required information;
• Compile payroll, hours, job category, and demographic information; and
• Partner with counsel to conduct an audit, identify any potential unexplained wage disparity, and evaluate the need to include “clarifying remarks” in the report.

If you have question on the new reporting requirements, please contact your Baker McKenzie lawyer.