CALIFORNIA PAY DATA REPORTING
The California Civil Rights Department (CRD) recently updated its requirements as a result of California Senate Bill 1162, which will affect the California Pay Data Reporting for the 2022 filing season. Although some updates are still pending, we have compiled a list of the changes below to help you prepare for this year’s filing.
Who’s Required to File CA Pay Data Reports, What’s Included, and When to File:
- Private employers with 100 employees or more are required to file the Payroll Employee Report regardless of whether the employer had to file an EEO-1 report. Submitting an EEO-1 report does not meet the reporting requirements.
- Private employers (or Client Employers) with at least 100 workers hired through labor contractors (with at least one in California) must file an additional and separate annual Labor Contractor Employee Report covering the employees hired in the prior calendar year through labor contractors. All labor contractors are to be identified and included in a single report.
- Labor contractors must supply the required information and data to the employer.
- Mean and median hourly rates MUST now be included for each establishment job category and pay band, by race, ethnicity, and sex on both reports. CRD’s updated FAQs provide a detailed explanation of how employers should make these calculations. The snapshot period for each Report will be a single pay period between October 1 and December 31 of the reporting year.
- The new deadline for filing reports will now be the 2nd Wednesday of May each year, with the 2022 reports due May 10, 2023. The Portal to receive reports will open on February 1, 2023. See: https://pdr.calcivilrights.ca.gov/s/
- CRD will provide updated report templates and other documents by February 1, 2023.
Other Important Changes to Prepare For:
- Employers must only report employees and contract workers who are working in California and are assigned to a California establishment (those who are working outside of California and are assigned to an establishment outside of California should not be included). Single establishment employers who are located in California will still report all employees since all employees are assigned to an establishment in California.
- Employers with more than 15 employees are required to include pay scales on job postings.
- Employers who do not file the required reports will be penalized $100 per employee on the first failure to file, and $200 per employee for subsequent violations. Labor contractors who do not submit the required data to the client employer may also be penalized. There may be additional enforcement action charges by the CRD.
HR Unlimited Inc. will continue to update you on any significant changes as soon as they become available. If you have any questions or need assistance with the CA Pay Data Reporting, our experts are available to provide you with full support. We will also have a free webinar coming soon on April 12, 2023, that will address the new pay data requirements, including reporting procedures. All of our webinars qualify for HRCI and SHRM credits. Save your seat today!
HR Unlimited, Inc. specializes in helping federal contractors and employers effectively meet their AAP and EEO compliance obligations. Please contact us to discuss any of your questions, concerns, or needs in this area.