Updated Guidance Released for SB 1162 – California’s New 2023 Pay Data Reporting Requirement for Workers Provided by Third Parties

The California Civil Rights Department (CRD) released amended FAQs providing guidance on compliance with the new pay data reporting requirements. PDR FAQs – 2022 Reporting Year | CRD (ca.gov)  As previously reported here and here, Senate Bill 1162 amended Labor Code section 432.3 and Government Code section 12999 as part of California’s ongoing efforts to promote workplace pay transparency as a means to combat pay discrimination. Companies need to act now to be prepared to comply with the obligation to not only report data for their W-2 employees, but also the new obligation to compile and report data for workers supplied by staffing agencies and other third parties that are either working at, or assigned to, any California locations. This blog discusses the CRD guidance regarding this significant new development, together with takeaways for compliance.

What is the New Deadline to Submit Pay Data Reports under Senate Bill 1162?

The reporting deadline has been pushed back from March 31 to May 10, 2023. The FAQs have a link to the online portal and templates that employers can use to create their reports. Additional resources will continue to come online for employers.

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Employers, It’s Happening! New York State Enacts Pay Transparency Law

On December 21, 2022, Governor Kathy Hochul signed Senate Bill S9427A (the NY Law), which requires covered employers to include salary or wage range—and the job description—in job postings.  The NY Law will go into effect on September 17, 2023.  New York joins a growing trend of wage transparency efforts by a number of states, counties and cities as a way to close the wage gap for women and workers of color.  With New York, approximately 20 percent of the American population will live or work in a state requiring pay transparency.

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New Guidance Released for SB 1162 – California’s Pay Scale Disclosure Requirements

As part of California’s ongoing efforts to promote workplace pay transparency, Senate Bill 1162, which amends Labor Code section 432.3 and Government Code section 12999, went into effect on January 1, 2023. On December 27, 2022, the California Labor Commissioner’s Office released FAQs on the new pay scale disclosure requirements. This blog discusses the guidance provided by those FAQs, and provides takeaways for employers faced with the implications of SB 1162 as we ring in 2023.

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New California Laws for 2023 and Beyond: What Employers Should Know

In 2022, California Gov. Gavin Newsom signed many laws impacting California employers. Some of the new laws became effective immediately and others, including some that were signed into law just weeks ago, take effect January 1, 2023, or later. These new laws address several topics, including supplemental paid sick leave, pay transparency, leaves of absence and fast-food restaurant employment standards.

As a reminder, the minimum wage in California is increasing to $15.50 per hour on January 1, 2023, for all employers — regardless of the number of workers employed by an employer. Also, many cities and local governments in California have enacted minimum wage ordinances exceeding the state minimum wage.

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California Governor Gavin Newsom Signs Pay Transparency Bill

On September 28, California Governor Gavin Newsom signed SB 1162 into law, effectively amending Section 12999 of the Government Code and Section 432.3 of the Labor Code, which expands pay data reporting obligations, requires certain-sized employers to provide the pay scale for an open position in job postings and imposes new record-keeping requirements. It will become effective on January 1, 2023.

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OFCCP Revises Recent Directive on Compensation Analysis

On August 18, 2022, the U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) revised Directive 2022-01 (DIR 2022-01) to clarify its earlier guidance addressing federal government contractors’ regulatory requirement to evaluate compensation as part of their affirmative action programming. Originally referred to as the “pay equity audit,” OFCCP Director Jenny Yang noted in her accompanying DOL blog post that the change in terminology from “pay equity audit” to “compensation analysis” was made to avoid any confusion regarding the nature of contractor obligations.

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