Effective January 1, 2026, California Senate Bill 464 requires employers with 100+ employees to keep employee demographic data (race, ethnicity, and sex) used for CA Pay Data reporting separate from personnel files. The new law is intended to reduce bias and protect employee privacy in pay data reporting.
Key Aspects of SB 464
- Effective Date: January 1, 2026
- Scope: Applies to all demographic data – including race, ethnicity, and sex – gathered for annual California Pay Data reporting.
- Purpose: To prevent managers and decision-makers from having access to sensitive demographic information when making everyday personnel decisions, thus reducing the risk of potential discrimination or bias.
- Requirement: Any demographic information gathered by an employer or labor contractor must be collected and stored separately from employees’ personnel records.
- Penalties: Upon request by the Civil Rights Department, a court can impose a civil penalty not to exceed one hundred dollars ($100) per employee upon any employer who fails to comply with the information collection/storage requirement and not to exceed two hundred dollars ($200) per employee upon any employer for a subsequent failure to comply.
Changes Within Datatech Software
A new software update includes changes that will help you comply with SB 464 requirements. To download the update, go to Tools > Check for Updates. Below are the changes and new features you’ll see after updating your software.
Employee View
The Gender entry now appears under the Benefits tab instead of the Employee Info tab.
Employee view in The Farmer’s Office and The Labor Contractor’s Office
Employee view in the HR program
HR Program
4 new windows have been added to accommodate changes to Pay Data Reporting as a result of SB464:
See Topic: Edit EEO/California Pay Data Information
See Topic: Demographic Compliance
See Topic: Federal EEO-1 Report
See Topic: California Employer Pay Data Report
Other Resources
Click here to download a PDF manual showing how these windows are used when exporting EEO and California Pay Data information.
Watch our video tutorial for the CA Pay Data Report.
Review our previous blog post regarding changes made to the California Labor Contractor Pay Data Snapshots window per SB 464.
As regulations continue to evolve, we remain committed to helping you stay compliant. We will continue to monitor legislative changes like SB 464 and enhance our software to support your compliance needs – so you can stay focused on running your business.