Statistical & Technical

Mean and Median Hourly Rate

Statistical measures of central tendency for hourly wages, required for pay data reporting.

Definition

Senate Bill 1162 mandates that employers include the 'mean and median hourly rate' for each combination of race, ethnicity, and sex within each job category in their annual pay data reports. The mean (average) hourly rate provides a general sense of compensation, while the median (middle value) hourly rate offers a more robust indicator by mitigating the impact of outliers. Reporting both measures allows for a more nuanced understanding of potential wage disparities and helps the California Civil Rights Department identify patterns of unjustified pay inequality.