What Employers Need to Know about SOC Codes in 2027

SOC codes - the Standard Occupational Classification (SOC) system - are having a moment right now because they will be used as the occupational reporting categories in next year's California Pay Reports. However, SOC codes can be used in many other ways, and most businesses (even those without business in California) would benefit from having expert review of the SOC codes assigned to specific jobs.

This article will explore what all employers should know about these codes, and how Berkshire can help you maintain consistency and accuracy when using this data.

What is the SOC Code?

The Standard Occupational Classification (SOC) system is a federal statistical standard used by federal agencies to classify workers into occupational categories for the purpose of collecting, calculating, and reporting workforce data. SOC Codes are maintained by the U.S. Bureau of Labor Statistics and organize workers into 867 detailed occupations, which roll up into 459 broad occupations, 98 minor groups, and 23 major groups.

Each SOC Code is a six-digit code. The digits represent increasing levels of occupational detail, beginning with the major occupational group and narrowing to the specific detailed occupation.

For example, SOC Code 17-2011 identifies Aerospace Engineers. The first two digits, 17, represent the major group for Architecture and Engineering Occupations; 20, represents the minor group of Engineers. 11, represents the specific occupation of Aerospace Engineer.

Are SOC Codes the same as Census Codes?

No. SOC Codes and Census Codes are related occupational classification systems, but they are not the same. SOC Codes are six-digit occupational codes used to classify workers based on job duties. Census occupation codes are used by the U.S. Census Bureau for demographic and labor force data, such as the American Community Survey. In some cases, a Census Code may correspond to more than one SOC Code, so mapping between the two may require review and professional judgment.

How are SOC Codes used?

SOC Codes are used by government agencies and other organizations to support workforce reporting, labor market analysis, compensation benchmarking, job classification, and workforce planning. They provide a consistent framework for describing occupations across industries and sectors.

Some states require the use of SOC Codes when submitting employment data, such as unemployment insurance or workforce development programs, including, for example:

• Alaska
• Louisiana
• Washington
• South Carolina
• West Virginia
• Indiana

Additionally, SOC codes are used by higher education institutions to track fields of study and academic completion rates as part of the Classification of Instructional Programs (CIP) system. SOC Codes are also used in the IPEDS (Integrated Postsecondary Education Data System) reports.

For employers, SOC Codes can help align workforce data with recognized occupational standards and may be required for certain federal, state, or local reporting obligations.

Do SOC codes need to be updated every year?

A well-built initial mapping can often be reused without significant year-over-year updates. However, organizations should review the mapping when they add new job codes, change job titles, modify job duties, reorganize job architecture, or experience other significant workforce changes.

How can Berkshire help with SOC codes?

Berkshire can provide support with planning, job mapping, SOC-based classification review, data validation, and report preparation. This support can help clients prepare for the expanded California Pay Data Reporting requirements and the growing number of state reporting that relies on these occupational categories.

Your consultant will review available information such as job title, job duties, EEO-1 category, AAP job group where applicable, job family, assigned Census codes, and other relevant workforce data. Because SOC classifications are based on work performed rather than job title alone, client review and confirmation are important parts of the process. Consultants also can validate SOC codes that you already have assigned and identify questions, inconsistencies, or items that may require further review.

What do California employers need to know about the SOC Code?

California Senate Bill 464 updates the state’s pay data reporting requirements by moving from the broader EEO-1 job categories to 23 SOC-based job categories. This change is expected to provide more detailed occupational groupings for pay data reporting and may increase the level of detail employers need to evaluate when preparing their reports.

The new SOC-based job categories take effect January 1, 2027. Employers should prepare to use the new categories for the 2026 California Pay Data Report, which is expected to be filed in May 2027.

What will California do with the reported information?

California does not specify every way it may use individual employer reports, but the state publishes consolidated pay data reporting results and uses pay data reporting to support pay equity monitoring and enforcement. The move to more detailed job categories may allow for more focused review of pay patterns across occupational groups.

Should we perform additional analysis on our California pay data?

Yes. Berkshire recommends conducting a pay analysis to help identify potential areas of risk before or after the California Pay Data Report is submitted. This analysis can help employers better understand pay patterns and prepare for potential follow-up questions. The use of the more detailed SOC job categories will allow California to compare the pay of employees performing more similar work to identify pay discrimination issues.