The California Department of Fair Employment and Housing (DFEH) has proposed a potential extension of two months for employers to comply with the state’s new pay data reporting requirements. The new reporting requirements under California’s pay transparency law have caused confusion among employers and labor contractors alike.
Current reporting deadline
The deadline for reporting obligations for workers hired through labor contractors is currently set for May 10, 2023. This means that private employers with 100 or more employees and/or workers supplied by contractors must file separate reports on pay, demographics, and other workforce data for both their employees and workers hired through contractors.
Enforcement Deferral Request
Employers can request an “enforcement deferral” by submitting an online request through the CRD’s pay data reporting portal. This is an option available to employers who are unable to comply with the reporting requirements by May 10, 2023. If approved, the deadline for compliance would be moved to July 10, 2023.
Proposed new deadline
The proposed extension for compliance would give employers an additional two months to comply with the new pay data reporting requirements. This would mean that employers have until July 10, 2023 to submit their reports. While the deadline for submitting pay data reports to the CRD remains May 10, 2023, the CRD may seek a court order for compliance after that date.
CRD Enforcement after May 10th
Employers who fail to comply with the reporting requirements by the May 10th deadline may face enforcement action from the CRD. The CRD may seek a court order to compel compliance, which could result in fines, penalties, or other consequences for noncompliant employers.
Confusion for Employers and Contractors
The new reporting requirements under California’s pay transparency law have caused confusion among both employers and labor contractors. The law requires employers to make direct comparisons of pay rates between different racial, ethnic, and gender groups, which can be a complex and challenging task.
Reporting requirements for employers
Private employers with 100 or more employees and/or workers supplied by contractors must submit a pay data report to the EEOC each year, regardless of whether they have filed a federal EEO-1 report. The report must include information on pay and hours worked, broken down by job category, gender, race, and ethnicity.
Effective date of the new pay data reporting requirements
The new pay data reporting requirements took effect on January 1, 2023, meaning that affected employers must comply with the reporting requirements for the first time in May 2023. This is a significant change that requires employers to make direct comparisons of pay rates between different racial, ethnic, and gender groups.
The new law impacts private employers with 100 or more employees in California, requiring them to submit a pay data report to the California Department of Fair Employment and Housing (DFEH) each year. The law aims to increase pay transparency and reduce pay disparities by shining a light on potential discriminatory pay practices.
Complying with California’s new pay data reporting requirements is essential for affected employers. While the California Department of Fair Employment and Housing (DFEH) has proposed an extension for compliance, employers should make every effort to meet the May 10th reporting deadline to avoid enforcement action from the DFEH. By submitting accurate and complete pay data reports, employers can demonstrate their commitment to fair and equitable pay practices in the workplace.