California: Updated Pay Data Reporting Guidance
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APPLIES TO Private Employers with 100+ EEs filing EEO-1 reports |
EFFECTIVE February 1, 2024 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
Private employers with 100 or more total employees, with at least one employee in California, who are required to file EEO-1 reports must also file separate pay data reports with the state by May 8, 2024. Required pay data is reported according to race, ethnicity, and gender. Private employers with 100 or more employees hired through labor contractors must also submit a separate pay data report for those workers in California. Note that employers must report on their workers assigned to California establishments and/or working within California. Employers may not report on workers who are working outside of California and are assigned to an establishment outside of California.
The California Civil Rights Department (CRD) recently updated its guidance to assist employers with their filing obligations. The guidance generally remains consistent with some key updates.
Updated Report Templates. Importantly, the CRD updated the User Guide, report templates, training slides, and its reporting portal. Employers must use the newest reporting templates as the portal will reject old versions. The templates have also been enhanced with embedded instructions when hovering the cursor over columns.
Remote Worker Data. Employers must now report whether employees worked remotely during the Snapshot Period. A “remote worker” includes a payroll or labor contractor employee who is entirely remote, teleworking, or home-based, and has no expectation to regularly report in person to a physical establishment to perform work duties. Employees in hybrid roles or (partial) teleworking arrangements expected to appear in person to perform work at a particular establishment for any portion of time during the Snapshot Period would not be considered remote workers for pay data reporting purposes. The “Snapshot Period” is a single pay period between October 1 and December 31 of the Reporting Year.
Reporting “Unknown” Data. For Labor Contractor Employee Reports, reporting “unknown” race/ethnicity or sex of a labor contractor employee is no longer permitted. If an employee declines to voluntarily provide their race/ethnicity, employers must still report the employee using (in the following order): current employment records, other reliable records or information, or observer perception. If an employee declines to state their sex, employers must still report the employee as male, female, or non-binary, using current employment records or other reliable records or information, such as an employee’s self-identified pronouns.
Covered employers should be preparing to file the required reports by May 8, 2024. The CRD is actively pursuing non-filers, including seeking monetary penalties of $100 per employee for the first violation and $200 per employee for subsequent violations.
Action Items
- Review updated guidance here.
- Download the current User Guide and templates here.
- Prepare the required reports for timely filing.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase