The California pay data report uses annual salary data based on box 5 of W-2s, and places employees in pay bands based on their salary. To make this data available to the report, you need to commit W-2s in Year End for the year being reported on. See Overview of USA Year End in the Payroll Administrator Guide.
The report also includes hours worked for the year being reported on. It uses hours that are logged against processed earnings in the Payroll feature. The eligible hours are gathered and summed up based on a payroll earning grouping that you specify when you configure the report template in HR Admin > Compliance Reporting > EEO. For example, you can use an earning grouping that counts regular hours, sick days, and vacation.
Earning groupings are configured in Payroll Setup > Groupings.