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California Pay Data Reporting Due...

California Pay Data Reporting Due May 10, 2023.

California law (Government Code §12999) requires all private employers with 100 or more U.S. employees (and at least one employee in California) to annually submit data on the pay, hours worked, and demographics of their employees to the California Civil Rights Department (formerly the California DFEH).

This regulation came into effect starting in 2021, but looks a bit different in 2023. The reporting has largely stayed the same, with the focus now on 2022 W-2 Box 5 Earnings, however there are some changes for employers to note. Mainly:

  1. Deadline change: the new due date is May 10, 2023.

  2. New reference materials:

  3. Mean and Median Rates: employers must calculate and report the mean and median hourly rate of its payroll employees and/or labor contractor employees, by establishment, by pay band, job category, race/ethnicity and sex.

  4. Increased penalties for non-compliance. Previously, the CRD was authorized to take civil action against an employer that failed to submit pay data reports, obtain an injunction requiring them to do so, and recover the costs for bringing such an action. However, SB 1162 adds civil penalties of $100 per employee for the failure to submit pay data reports, which increases to $200 per employee for subsequent violations. The FAQs have been updated to reflect these new civil penalties.

  5. Labor Contractor reporting. Under SB 1162, private employers that had one hundred or more employees employed through labor contractors during the prior calendar year are required to submit a separate pay data report covering the contractor employees. Employers must also disclose in the pay data report the names of all labor contractors used to supply employees. The law defines “[l]abor contractor” as “an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employer’s usual course of business.”

If you are interested in receiving assistance with the California Pay Data Reporting, let us know. The report is due May 10, 2023 and covered entities should not delay in preparing their data submissions.