Effective this year, large-size employers in California must submit a pay-data report to the California Civil Rights Department (“CRD”) (formerly known as the Department of Fair Housing and Employment) annually. Here’s a quick primer on the report’s requirements:
Who Has to Submit a Pay Data Report?
Employers in California who have 100 or more employees have to submit this report. In addition, employers who have 100 workers hired through labor contractors (e.g., staffing agencies) have to submit this report.
What Does This Report Require? And Why?
In short, this report requires employers to break down their workforce by racial, ethnic, and sex categories, and report the pay rates for workers along these categories. The impetus behind this is to encourage employers to self-assess pay disparities along racial, ethnic, and gender lines.
When is the Report Due? And Where?
The report is due this year on or before May 10, 2023. It must be submitted online via the CRD’s online portal.
This Sounds like the EEOC’s EEO-1 Reporting Requirement. Is it the Same Thing?
We know: California’s reporting requirement sounds the same as the EEOC’s EEO-1 reporting requirement. Critically, however, California’s reporting requirement is wholly separate and distinct from the EEO-1’s reporting requirement. So, compliance with one report’s requirements does not mean compliance with the other report’s requirements.
What If I Do not Submit the Report on Time?
The State can impose civil penalties on employers who fail to submit the pay-data report on time. These penalties can be $100 per employee and increase to $200 per employee for a subsequent failure to report on time.
Where Do I Get Additional Information?
The CRD has issued a voluminous set of guidelines in the form of FAQs. We recommend that you read these FAQs sooner rather than later to orient yourself with California’s reporting requirements.
In addition, we recommend that you review the CRD’s pay-data reporting templates to get a high-level sense of what and how the State expects you to complete the report.
For more information on pay-data reporting requirements, 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.
