Earlier this year, California employers had to handle yet another filing with state agencies. By March 31, employers with at least 100 employees were required to submit certain data about their workforce to the state’s Department of Fair Employment and Housing (DFEH). This requirement arose from a bill passed in the state legislature late last year; now law, SB 973 (codified as Government Code Section 12999) aims for the state to gather information on compensation along racial and gender lines.
What Do Employers Have to Report?
Employers have to report the number of employees that fall within 10 job categories that run the gamut from managers and executives to administrative support and laborers. For each category, employers need to report the demographic composition of these employees in terms of race, ethnicity, and sex.
Additionally, employers must give information about these three data sets (race, ethnicity, and sex) in terms of where their employees’ earnings fall within the federal Bureau of Labor Statistics’ pay bands.
Employers must also report the number of hours worked by each employee in addition to the time each employee was compensated for not working (such as vacation and sick days). Employers must provide this information within the pay bands associated with the Bureau of Labor Statistics as well.
Finally, each pay data report should contain information about the employer’s address, contact information, reporting year, tax identification numbers, and any parent companies or subsidiaries. A representative of the company must attest that the information contained is accurate.
Which Employers Are Subject to this New Requirement?
Private companies with 100+ employees that employ at least one California employee must submit these pay data reports. In counting your employees, you must include both full- and part-time employees, temporary employees, and workers on leave of absence. The workforce total for many businesses fluctuates throughout the year; to provide clarification, the DFEH requires employers to choose a “snapshot period” that set the number of employees for that company. Any pay period between Oct. 1 and Dec. 31 of the previous year may be chosen as the snapshot period.
An important note is that employers were able request a one-month extension for submitting these reports in 2021. However, the state has suggested that this accommodation was implemented due to the pandemic and other unique circumstances. In other words, California employers should prepare for a hard deadline of March 31, 2022 for the next report.
Conclusion
While this new filing is expected to help California workers participate in a more equitable workforce, it can be a hassle for employers to remember. It’s no secret that employers operating in California have unique challenges on top of turning profits and keeping the lights on. Integrated General Counsel is well prepared to help you meet these challenges by providing customized legal solutions for your business. Call our team today at (925) 399-1LAW to set up an appointment.
- California Government Fights Fee Collection - April 23, 2024
- California’s Stance on Noncompete Clauses - April 23, 2024
- Simplifying Cal/OSHA Workplace Safety in California - March 4, 2024
