Employers Prepare for New Changes to CA’s Pay Data Reporting

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As you may already know, California law requires private employers with 100 or more payroll employees to file an annual Payroll Employee Report (“Pay Data Report”). The California Civil Rights Department (“CRD”) has recently implemented several key changes to this year’s reporting requirements—and State issued templates for reporting the same. Therefore, employers should understand these changes before initiating the data collection process and submitting a Pay Data Report, which is due on May 8, 2024.

Here are the main updates:

  • Use the CRD’s New Template. The CRD has issued brand-new templates for filing a Pay Data Report. They are located here. These templates—and not the ones from last year—must be used. Please be sure to delete and replace your old templates with the new ones provided.
  • Remote Worker Reporting Obligation: As is evident in the new templates, employers must now report the number of employees who worked remotely and the number of employees who do not work remotely—both within and outside the State of California. (Note, however, hybrid workers are not considered “remote” workers for purposes of the Pay Data Report).
  • Demographic Data is Mandatory: Employers are no longer permitted to report as “unknown” the race, ethnicity, or sex of labor contractor employees. It is now mandatory for employers to report on sex, race, and ethnicity, even if a worker declines to provide the information—in which an employer must still do based on current employment records, other reliable information, or observer perception.

Employers should initiate the process of gathering employee information promptly, as it can be a lengthy process. Covered employers must ensure they have all the newly required race, ethnicity, and sex data, as well as remote worker designations, to ensure full compliance with the new Pay Data Report deadline.

For more information on compliance with California’s Pay Data Report, please contact us at info@mnklawyers.com.

This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.