New FAQs issued to Help Employers Navigate California's updated Pay Data Reporting requirements
Recently, the California Civil Rights Department (CRD) issued its up-to-date FAQs for employers’ Pay Data Reporting requirements. The state agency, self-described as being charged with enforcing California’s civil rights laws and protecting Californians from unlawful discrimination in employment, housing and public accommodations and from hate violence and human trafficking, has just this month clarified employer questions that had arisen after the passage of Senate Bill (SB) 1162 in 2022. SB 1162 had not only enacted new pay transparency requirements but made changes to existing pay data reporting rules adopted in 2020 by SB 973. The Legislature’s intent behind its original 2020 adoption of pay data reporting for private employers of 100 or more employees was to encourage these employers to self-assess pay disparities along gendered, racial, and ethnic lines in their workforces and promote voluntary compliance with equal pay and anti-discrimination laws.
In late 2022, the Labor Commissioner propounded new guidelines for the pay transparency portion of SB 1162 only. Now employers have some additional assistance with navigating the amended pay data reporting rules via new FAQs released by CRD. Highlights addressed by the FAQs include:
- Deadline change: Pay data reports covering the 2022 Reporting Year are due by Wednesday, May 10, 2023 (see FAQs Part II).
- Labor contractor worker reporting: Reporting employers must file a separate “Labor Contractor Employee Report” that covers workers hired through labor contractors in the prior calendar year (see FAQs Parts II, IV and V).
- Mean and median rates: Employers must calculate and report the mean and median hourly rate of payroll employees and/or labor contractor employees (see FAQs Part V).
- Increased penalties for non-filers: CRD may obtain a monetary penalty against any employer that fails to file a required report, as well as against any labor contractor that fails to supply necessary data to a client employer (see FAQs Part II).
- New versions of pay data reporting resources for the new reporting year will be available by February 1, 2023, at www.calcivilrights.ca.gov/paydatareporting. The FAQ entitled “How do employers submit their pay data reports to CRD?” provides further information on this topic (see FAQs Part II).
CRD’s support team has also provided contact information for employers with additional questions not answered by the updated FAQs at [email protected]. As usual, Rosasco Law Group can help you navigate the multitude of employer requirements. Give us a call for any of your reporting needs.
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