California Will Require New Pay Data Filing Categories

California employers must use 23 new job categories for pay reports due on May 12, 2027.

Updated on Oct. 7, 2026 in Human Resources

Bold flat-color editorial illustration showing twenty-three stacked geometric cubes in a pyramid, representing structured occupational reporting categories. — California employers must adopt 23 new federal job categories for mandatory pay data reporting beginning with the 2026 cycle, with a final May 12, 2027 deadline. AI Illustration. Upload story photo >

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Beginning with the 2026 data reporting cycle, California employers will transition from 10 EEO-1 categories to 23 federal Standard Occupational Classification categories. This shift in pay data reporting, mandated by legislation, concludes with a May 12, 2027 deadline.

Why it matters

The change seeks to improve data accuracy by focusing on specific occupational functions rather than broad job groupings. Aligning internal structures with these federal standards is critical to avoid increased financial penalties for reporting failures.

California is moving to 23 federal SOC categories to replace the previous 10 EEO-1 classifications. Non-compliance penalties reach $1,000 per employee for repeat failures, a significant increase from the $100 penalty for first-time errors.

The players

California Civil Rights Department

This state agency is responsible for enforcing civil rights laws and may request court-imposed penalties for non-filing.

The details

Employers must now conduct a comprehensive review of job duties and organizational structures to reassign positions to the new federal categories. Staff members performing multiple tasks must be classified under the occupation requiring the highest skill level to ensure compliant filings.

Senate Bill 464 was signed into law in October 2025.
New repeat failure penalties of $1,000 per employee begin on January 1, 2027.
Pay data reports covering 2026 data are due May 12, 2027.

Market Landscape

This mandate follows the regulatory roadmap established by Senate Bill 464, which was signed in October 2025. The shift mirrors a broader trend toward granular, federally aligned employment data collection across state labor jurisdictions.

Employers must begin mapping roles immediately to avoid year-end administrative pressures and potential system limitations. Failure to properly categorize employees by the May 2027 deadline could result in significant financial penalties for the business.

The takeaway

Businesses should proactively review organizational charts before the start of the new year to align roles with the required categories. Preparation ensures that reporting remains accurate and protects the company from the heightened penalty structure for repeat filing failures.