Federal contractor compliance has changed significantly over the past 20 months. Often these changes can have implications for state and local government requirements, such as the recent changes to Section 503 data collection and reporting. This article summarizes key state equal employment opportunity and affirmative action (EEO/AA) considerations to help employers understand the evolving compliance landscape.
Some states and local governments impose EEO/AA requirements on organizations that contract with them to provide goods or services. These include Minnesota, Wisconsin*, Kentucky, California, New Jersey, Illinois, the City of St. Paul, Minnesota, and the City of Madison, Wisconsin. This list is not exhaustive, and requirements vary by jurisdiction.
*The parenthetical “for now” is because we are watching the November 3, 2026 ballot measure in the State of Wisconsin which, if approved by voters, would effectively remove the requirement for affirmative action programs in public contracting.
Other state requirements apply because an organization operates in the state, often by employing people who work or live there. Examples include California Pay Data Reporting, Illinois Equal Pay Registration Certification, and the Massachusetts Wage Transparency Act. This list is also not exhaustive, and requirements vary by state.
In addition to the items above, some states have Pay Transparency requirements. These often include disclosure of pay ranges in job postings; be sure to download Berkshire’s State Pay Transparency Playbook for more information.
Beyond the potential change in Wisconsin, employers should prepare for several state and local requirements that are scheduled to take effect in the coming years.
In Colorado, HB26-1207 goes into effect on July 1, 2027 which will require an EEO-1 like filing of certain private employers. While the mechanics of the filing are still unknown, there are steps to take now to prepare.
In California, Pay Data Reporting will experience changes in 2027. The reports are moving away from a system that organizes jobs by EEO Job Categories and moving to one based on SOC Codes. Now is the time to review the changes and prepare your job codes for the new filing requirements.
New York City is also implementing race and sex pay data reporting. Although the city has not yet finalized the system or reporting form, employers can begin evaluating potential coverage, data-collection needs, and opportunities to conduct proactive pay analyses under privilege.
First, stay calm. What may initially seem overwhelming is often manageable with a focused, cross-functional approach. Start with the following five steps:
Identify every state where employees work or reside. This information is essential for determining which state and local obligations may apply.
Review all contracts your organization has signed with state and local governments. Confirm whether each contract is active, note its value, and identify any EEO/AA obligations in the agreement.
For each confirmed contractual obligation or potential regulatory requirement, evaluate the organization’s current compliance status and document any gaps.
Create a plan to close identified compliance gaps and maintain compliance with current obligations.
Establish a process for reviewing future contracts and requests for proposals (RFPs) for potential EEO/AA obligations before the organization commits.
State and local government requirements present as a patchwork of obligations. But with knowledge, planning and vigilance, you can navigate the systems to keep your company compliant. Be sure to sign up for Berkshire’s blogs to stay up to date on changes and reach out to your Berkshire consultant for more information about how we can help.