As we previously reported (here), California requires private employers of 100 or more employees (with at least one employee in California) to report pay and demographic data to the California Civil Rights Department (“CRD”) (formerly the Department of Fair Employment and Housing). Senate Bill 1162 (previously covered here) enhanced California’s reporting requirements by:
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Changing the deadline to May 10, 2023 for the 2022 reporting year;
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Adding the requirement that a private employer 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 separate “Labor Contractor Employee Report;”
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Requiring employers to calculate and report the mean and median hourly rate of their payroll employees and/or labor contractor employees, by establishment, pay band, job category, race/ethnicity, and sex; and
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Permitting CRD to obtain a monetary penalty against (1) employers ($100 per employee against an employer who fails to file a required report, and $200 per employee for a subsequent failure), and (2) against any labor contractor that fails to supply necessary data to a client employer.
On April 18, 2023, CRD began accepting “enforcement deferral requests” from employers for their Labor Contractor Employee Reports due May 10, 2023. If approved, CRD will defer – through July 10, 2023 – seeking an order of compliance for the employer to file its Labor Contractor Employee Report. CRD will only consider employer requests if the employer is registered in CRD’s pay data reporting portal, and will only accept requests through the portal.
For further information and guidance related to the pay data reporting requirements, California employers may wish to consult the CRD’s FAQs and/or consult with counsel before submitting their reports by May 10, 2023.
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