State & Local Employment Law Developments: Q2 2023

The trend of increasing workplace regulations by state and local governments continued throughout the second quarter of 2023. Although it is not possible to discuss all state and local laws, this update provides an overview of recent and upcoming legislative developments to help you and your organization stay in compliance.

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California Pay Data Reports Due May 10, 2023

On May 10, 2023, employers must submit their pay data reports to the California Civil Rights Department (CRD). As previously reported 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. Employers are required to comply annually 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 their labor contractors that are either working at, or assigned to, California locations.

Which employers must report?

Private employers with 100 or more employees (with at least one employee based in California) must file a “Payroll Employee Report.” New in 2023, all private employers with 100 or more workers hired through labor contractors in the prior calendar year (with at least one worker based in California) must file a “Labor Contactor Employee Report.”

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State & Local Employment Law Developments: Q1 2023

The trend of increasing workplace regulations by state and local governments continued throughout the first quarter of 2023. Although it is not possible to discuss all state and local laws, this update provides an overview of recent and upcoming legislative developments to help you and your organization stay in compliance. (Please note that developments related to issues such as minimum wage rates are not included.)

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Ninth Circuit Rules California Employers Can Require Arbitration Agreements

Some good news for California employers: recently, the U.S. Court of Appeals for the Ninth Circuit ruled that California employers can require employees and applicants to sign arbitration agreements as a condition of employment, reversing its own prior decision which vacated U.S. District Court for the Eastern District of California’s grant of a preliminary injunction against enforcement of Assembly Bill 51 (AB 51).

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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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New Employment Laws for 2023: What California Employers Need to Know

2023 saw more people engaged with in-person, positive community as COVID-19 infections and serious cases declined. Yet, last year in our state was also marked with difficult impacts of politics, social media, the economy, divergent weather, wildfires and water scarcity. And, almost as sure as the sun rises each day, regulation of California employers increased too. More than 580 bills introduced in the last California legislative session mention “employer,” compared to about 330 bills in 2021.

While most bills did not pass the legislature, many were signed into law by Gov. Gavin Newsom, bringing more rules and risks for employers dealing with workplace safety, privacy, leaves of absence, anti-discrimination, wages, benefits and working conditions.

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