California Gov. Gavin Newsom signed several laws impacting California employers in 2023. Some of the new laws became effective immediately and others, including some that were signed into law just weeks ago, take effect January 1, 2024, or later. These new laws address several topics, including expanding paid sick leave, leave of absence for reproductive loss, minimum wage increases for fast-food restaurant employees and health care workers, restraint on trade, and workplace violence prevention standards.
In May, the U.S. Department of Justice announced that 10 employers have settled claims that they violated the Immigration and Nationality Act (INA) by posting discriminatory job advertisements on a college recruiting platform. These actions have cost individual employers over $300,000 and serve as a warning to make sure that online job boards are compliant with the INA before posting to them.
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.”
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.
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.
On October 11, 2022, the U.S. Department of Labor (DOL) issued a new proposed rule that is more aligned with judicial precedent than a previous proposal regarding whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The proposed rule would rescind the Independent Contractor Rule (2021 IC Rule) promulgated by the Trump administration on January 5, 2021, which has been criticized by some for making it easier for businesses to classify workers as independent contractors.
This is the DOL’s second attempt to rescind the 2021 IC Rule, after a Texas federal court ruled that the DOL’s first revision failed on procedural grounds. The DOL’s latest proposal may also face legal challenges when it is made final. The proposal is subject to a 45-day comment period beginning October 13, 2022, the date of publication in the Federal Register.