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.”
What is the deadline for companies to submit their pay data reports?
The reporting deadline covering the 2022 Reporting Year remains Wednesday, May 10, 2023.
What if I need more time to submit the Labor Contractor Employee Report?
Employers may request an enforcement deferral of their Labor Contractor Employee Report from May 10 through July 10, 2023.
May I request a deferral of the Payroll Employee Report as well?
Unfortunately, no. The enforcement deferral applies only to the Labor Contractor Employee Report.
What immediate steps should companies take?
- Determine whether you must comply with the pay data reporting requirements and submit the Payroll Employee Report and the Labor Contractor Employee Report.
- Submit your Payroll Employee Report by Wednesday, May 10, 2023. CRD’s California Pay Reporting portal can be found here.
- If you must file a Labor Contractor Employee Report, determine whether your labor contractors have supplied the required data and information to you. Labor contractors need to disclose the mean and median hourly rates by establishment, job category, race/ethnicity and sex for the labor contractor employees working at and/or assigned to your California locations/establishments. Your labor contractors may need more time to provide the data.
- If you do not believe your company can submit a complete and accurate Labor Contractor Employee Report by the May 10 deadline, submit a request for a deferral with CRD as soon as possible. Companies must register at CRD’s portal to submit a request. It is best to register with CRD now if you have not already done so. Note: CRD will not consider requests submitted by a third party, such as a Professional Employer Organization.
- Obtain advice from legal counsel regarding the reporting requirements, deferral requests and how they apply to your company.
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