California’s Department of Fair Employment and Housing (DFEH) has issued new guidance in the form of frequently asked questions on the state’s pay data collection and reporting requirements. To help employers get ready to comply, on February 1, 2021, DFEH released a template pay data report form and guide for submitting reports through the portal. DFEH’s pay data submission portal will be available by February 16, 2021. Once the portal is live, employers must use the online portal to submit their pay data reports.
On September 30, 2020, California Governor Newsom signed into law Senate Bill 973, which requires California private employers with 100 or more employees to submit an annual pay data report to the state’s Department of Fair Employment and Housing beginning on March 31, 2021. See our previous alert for additional details. We recommend that employers with 100 or more employees in California work with legal counsel as soon as possible to conduct privileged pay audits prior to collecting pay data and submitting the report to California.
With the Equal Employment Opportunity Commission’s (EEOC) announcement that it would abandon current efforts to collect the controversial Component 2 pay data, California has taken the first step in filling the void left behind by seeking to enact a state law requirement to collect employee compensation.