Under California law, every business with 100 or more employees and/or 100 or more people  hired through labor contractors – and with at least one in California — must annually report to the Civil Rights Department (CRD) detailed worker data including job category, sex, race/ethnicity, pay and hours worked (the pay data report). This year’s filing deadline is May 8, 2024).

On March 12, 2024, the CRD released prior report findings showing gender pay gaps in every major industry, particularly for women of color.  For example:

• Women typically make an estimated 81 cents for every dollar men earn;
• Women earn less than men in every reported industry, including finance, construction, and trade;
• In the finance sector alone, women receive an estimated $10.3 billion less pay than men each year; and
• The smallest pay gaps are found in lower paid jobs such as service work and administrative support.

CRD Director Kevin Kish stated: “Pay discrimination is real, it is persistent, and it happens right here in California.  The new few findings we’re sharing today make it clear that there is a long road ahead of us for true pay equity in our state.  Whether it’s through clearly identifying the challenge, taking direct legal action, or encouraging employers to step up the plate, it’s going to take all of us working together to make a difference.”

Take-Aways:

All employers should routinely assess job advertising, interviewing, pay scales and other hiring and retention practices to prevent or correct unlawful pay disparities and ensure equal employment under applicable federal and state laws including California’s Fair Pay Act and Fair Employment and Housing Act (FEHA).

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Freedom Between the Lines – Workplace Policy Handbook & Forms for 2024 (March 15, 2024)
• Payroll Data Reporting – May 8, 2024 Deadline for Companies with 100 + on Payroll (March 15, 2024)
• 72 Million Reasons Not to Mess with Women, Employer Agrees to End Widespread Sex Discrimination (February 16, 2024)
• Pay Fair – California Fair Pay Act Mandates Equal Pay Based on Sex, Race or Ethnicity (August 20, 2021)

Cindy Bamforth
April 18, 2024