California governor signs SB 1237, raising repeat pay data report nonfiler penalties to up to $1,000 per employee
Key points
- SB 1237 (Chapter 1019, Statutes of 2026) raises the cap for a second or later failure to file from $200 to $1,000 per employee; the first-failure cap stays at $100
- Not an urgency statute; takes effect January 1, 2027
- Reports are due by the second Wednesday of May; CRD has not announced the 2027 date. The 100-employee threshold counts employees outside California
On September 30, 2026, California Governor Gavin Newsom signed SB 1237 (Chapter 1019, Statutes of 2026), raising the maximum civil penalty for a second or later failure to file a pay data report from $200 to $1,000 per employee. The first-failure penalty stays at up to $100 per employee. It is not an urgency statute and takes effect January 1, 2027 under the California Constitution. Reports are due by the second Wednesday of May each year; the Civil Rights Department (CRD) has not yet announced the specific 2027 deadline. It covers private employers with 100 or more employees in total, counting employees outside California, and at least one employee in California. For reference only; this is not legal advice.
What employers should do
- Count all employees, including those outside California, to check the 100-employee reporting threshold
- Watch for CRD's 2027 filing deadline and updated reporting guidance
- If there were prior missed filings, assess penalty exposure and remediate promptly
Policy details
- Jurisdiction
- California
- Status
- Signed, not yet effective
- Effective date
- 2027-01-01
- Employers covered
- Private employers with 100 or more employees in total (including employees outside California) and at least one employee in California; employers using labor contractors file a separate report for those workers
- Official source
- View official source ↗
Original report: leginfo.legislature.ca.gov ↗AI-assisted brief; may contain inaccuracies. Rely on the original reports and official documents. For information only; not legal, immigration or insurance advice.