Genetic Testing Company Settles with State Over Alleged Pay Data Reporting Issues

SACRAMENTO – The California Civil Rights Department (CRD) today announced reaching a settlement with Natera, Inc., a genetic testing company, over its alleged failure to timely report employee pay and demographic data. Under California law, private employers with 100 or more employees are required to annually report pay, demographic, and other workforce data to the state. As part of the settlement, Natera is also committing to filing timely, complete, and accurate pay data reports in the future. These reports help the state and employers identify and address potential gender and racial wage gaps.

“Pay data is a vital tool to help identify and address potential pay discrimination,” said CRD Director Kevin Kish. “If companies fail to submit the pay data that state law requires, we won’t hesitate to hold them to account. This resolution will help ensure that Natera and our department have access to the data that helps us all work for equal pay.”

It’s in the Numbers

California collects pay data to encourage employers to conduct self-assessments of pay disparities, promote voluntary compliance with equal pay and anti-discrimination laws, and support state efforts to efficiently identify wage patterns and effectively enforce civil rights laws in the workplace. While California’s gender wage gap is one of the lowest in the nation, billions of dollars are lost to gender and racial pay gaps in California each year. By helping employers and the state clearly identify the challenge, the pay data reporting program can help drive action to address it.

Put to the Test

Despite requirements under California’s pay data reporting law, Natera allegedly failed to timely submit its pay data reports to the state for 2022, 2023, 2024, and 2025 by the statutory deadlines. The settlement announced today aims to address the company’s alleged reporting issues and, under the agreement, Natera has agreed to pay $375,000, as well as to completely and accurately submit all future reports to CRD in a timely manner.

Fighting for Fair Pay

CRD continues to tackle pay and related forms of discrimination across the state, including through ongoing efforts to ensure compliance with the state’s pay data reporting program and raise awareness around pay disparities. Just last month, the department released a new analysis showing that the finance industry has the biggest gender pay gap in California. CRD also reached a nearly $150,000 settlement with See’s Candies over alleged pay data reporting issues. In September, the department took legal action against a Burger King franchisee and an after-school program operator for their alleged failure to report pay and demographic data to the state.

In 2024, the department secured a $15 million settlement with Snapchat to resolve an investigation into claims of employment discrimination, equal pay violations, sexual harassment, and retaliation. In 2023, CRD secured final court approval of a $100 million settlement with Riot Games to resolve similar allegations, including with respect to equal pay. This year, Governor Newsom signed new legislation increasing civil penalties for employers who repeatedly fail to file the required pay data reports. Annual pay data reporting results from 2020 through 2024 are available on CRD’s website.

If you or someone you know has experienced discrimination, CRD may be able to assist you through its complaint process. The department also provides general information and factsheets online about civil rights protections, including on employment discrimination.

The settlement announced today was secured by Associate Chief Counsel Amy Moolin Cu.

You can learn more by reading the settlement.

The California Civil Rights Department (CRD) is the state agency charged with enforcing California’s civil rights laws. CRD’s mission is to protect the people of California from unlawful discrimination in employment, housing, public accommodations, and state-funded programs and activities, and from hate violence and human trafficking. For more information, visit calcivilrights.ca.gov.

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