News & InfoEP StoreAcademySupportCommunityProducts by Country
Blog Home

Diversity and Pay Reporting in California

Your guide to understanding SB 973 and its application to the entertainment industry
March 6, 2021

Joseph Scudiero

When California signed Senate Bill 973 on September 30, 2020, it created a significant change for companies within the state – including the entertainment industry. The new legislation now requires all private companies with 100 or more employees to report annual employee pay data broken down by race, ethnicity, and sex to the Department of Fair Employment and House (DFEH).

The intent of this change is to identify pay wage gaps in workplaces so as to better enforce equal pay and discrimination laws. Considering the entertainment industry is one of the largest employment sectors in California, it’s important that studios, production companies, and other entities understand the new requirements – which come with a learning curve.

To help with the upcoming March 31st deadline, we have prepared some FAQs to help better understand SB 973 and how it applies to the entertainment industry. Here is also a snapshot guide to some of the key components of the legislation to be aware of.

Employee Demographics and Pay Bands

Companies will have to report the number of employees by race, ethnicity and sex via 10 pre-determined job categories:

  • Executive or senior level officials and managers
  • First or mid-level officials and managers
  • Professionals
  • Technicians
  • Sales workers
  • Administrative support workers
  • Craft workers
  • Operatives
  • Laborers and helpers
  • Service workers

In addition, companies will have to report the number of employees by race, ethnicity, and sex across certain pay bands used by the U.S. Bureau of Labor Statistics. Because the job categories are broad, and the entertainment industry is home to occupations not necessarily designed for this style of organization, it’s important for companies to determine early on – as best as possible – what roles should be assigned to which job categories. For example: In which category does a production designer go? A special effects designer? A script supervisor? Invest time and thought into making those executive decisions to make reporting easier now and in the future.

Companies should also be prepared for how the new legislation differs from its federal counterpart, known as the EEO-1 Report, which several entertainment employers are also obligated to file. While SB 973 resembles the EEO-1 Report in some respects, SB 973 is broader and the reporting differs in material ways. That means companies need to be prepared to pull together a lot more data (particularly pay data) than they have in the past.

Structuring, Organizing, and Understanding the Data

Because of the unique way companies within the entertainment industry can be structured, entities – especially studios – need to determine how they will organize their information for reporting purposes. For example, the studio environment contains many different entities and divisions. Studios and production companies will need to determine if each unit should file separately? Does the studio or production company submit as one company and include the data for all its other units? How a studio or production company reports the data also may have labor law implications in other areas. Companies also need to be sure to understand how they will proceed in order to avoid any gaps that could risk violations and penalties.

Furthermore, while companies may already have reporting infrastructure in place to provide the previously required demographic information, that may not be the case for the new pay and hours data. It may be accessible but may exist in different systems and not organized in a way that will make it easy to report. All companies that fall under the purview of this new legislation should prepare for some front-end work this year. To help support the industry, Entertainment Partners has created a Diversity Management solution to give studios and production companies the tools to comply with SB 973.

EP’s solution is the only product designed specifically for the entertainment industry that can provide studios and production companies with the broad range of demographic and pay information necessary to comply with SB 973. To learn more about the EP Diversity Management solution, or for questions related to the new reporting required by SB 973, click the contact us button to submit a request.

Related Content

Film Industry Booms in Buffalo

9/20/2022
Western New York draws top filmmakers with expanded tax incentives, new soundstages, and architectural...
More
Master Series Square Thumbnail-Film Financing-Crowdfunding

Film Financing Explained: Crowdfunding

9/8/2022
Emily Best (Seed&Spark), Stacy Bradford (Indiegogo), and producer Zach Fineblum join us to discuss the ins...
EP Blog_SQUARE_1st AC Matt Sanderson

Meet the First Assistant Camera

9/7/2022
A conversation with 1st AC Matt Sanderson ('Everything Everywhere All At Once')
EP Webinar Panelists - US Production Incentives Update

US Production Incentives Update: New and Expanded Programs in 2022

8/19/2022
Film commissioners Colleen Bell and Sandy Lighterman, and production executives Jay Roewe and Ashley Rice,...
Streaming platform on tablet device

The Evolution of Residuals: How Streaming Changed the Model

8/11/2022
Understanding how residuals payments are calculated for new content on streaming platforms.
EP Blog_SQUARE_Penka Kouneva-2

Meet the Composer

8/2/2022
A conversation with award-winning orchestrator and composer Penka Kouneva (‘Revenge,’ ‘Pirates of the...
EP Blog_SQUARE_Wes Hagen

Meet the Location Manager

7/7/2022
A conversation with award-winning location manager Wes Hagen ('Ozark,' 'Hidden Figures.')
Jennifer Liscio

Spotlight: Jennifer Liscio, VP of Tax Incentives and Legal Affairs

5/31/2022
Meet EP's Canadian legal affairs and tax incentives domain expert, Jennifer Liscio, and learn how she’s...
Oklahoma route 66 sign

A New Frontier in Filmmaking

5/5/2022
Oklahoma is becoming a production destination, thanks to new incentives and infrastructure programs.
terms-to-include-uk-contracts-LC

Terms to Include in UK Crew Contracts

5/3/2022
Common terms which studios and production companies include in their UK crew contracts.
Topic: UK
More
Master Series Panelists-World Revenues, Foreign Sales, Senior Debt

Film Financing Explained: World Revenues, Foreign Sales, and Senior Debt

4/27/2022
Learn how working with agents, international distributors, and gap financiers can all factor into...

Producing with Purpose

4/27/2022
Creative Producer, Kimberly Goodman ('Selling Sunset', 'Project Runway') shares insights on creating...
EP Blog_The Race to Net Zero is On for Big Studios

The Race to Net Zero is On for Big Studios

4/20/2022
Film and television studios are embracing the green movement in a big way. Here’s what you can expect to...
EP Blog_Marge Dean

Opening Career Doors

3/29/2022
How WIA President, Marge Dean, is shaping the future of animation and empowering underrepresented genders
Digging Out of a Deficit-featured

Digging Out of a Deficit: What to Expect in the Second Quarter of 2022

2/25/2022
Federal and State Unemployment Insurance rates are rising. Learn how these changes will affect 2022 and...

Payroll & Finances

PayrollResidualsSmartStartNew SmartTimeProduction PortalEP On LocationSmartAccountingEP LiveSmartPOCASHétPayPaymaster Rate GuideEP Residency

Manage Multiple Productions

AssetHubSmartHubSmartHub Vault
Subscribe now

Be an industry insider with EP's
newsletters and alerts

LegalPrivacy NoticeSecurity
© 2022 Entertainment Partners. All rights reserved.