The deadline to comply with California pay reporting requirements is fast approaching. As reported last year, SB 1162 (codified in section 12999 of the California Government Code) requires private employers having 100 or more total employees to submit an annual report detailing pay, demographic, and other workforce data to the California Civil Rights Department (CRD) (formerly the Department of Fair Employment and Housing). The employee count for these purposes consists of full-time workers, part-time workers, and/or workers hired through labor contractors. This year, the reports are due on May 8, 2024, for reporting year 2023.

Reporting Requirements

On February 1, 2024, the CRD published updated FAQs for the 2023 reporting period that detail the following changes:

  • New Data Fields: Employers must report whether employees worked remotely during the Snapshot Period. The “Snapshot Period” is a single pay period between October 1 and December 31 of the reporting year that is chosen by the employer.
  • Race, Ethnicity, and Sex: On the Labor Contractor Employee Reports, employers are no longer permitted to report “unknown” race/ethnicity or sex of labor contract employees.

As a reminder, the following requirements remain in effect:

  • Mean and Median Pay Rates: Employers are required to calculate and report the mean and median hourly rate of their payroll employees and/or labor contractor employees by establishment, pay band, job category, race/ethnicity, and sex.
  • Increased Penalties: SB 1162 permits the CRD to obtain monetary penalties against any employer that fails to file a required report and any labor contractor that fails to supply necessary data to a client employer.
  • Only California Workers: Employers are only required to report on workers assigned to California establishments and/or working within California. Employers are not permitted to report on workers outside of California.

Takeaways

California employers should act quickly, if they have not already, to gather information necessary to comply with reporting year 2023 requirements by the May 8, 2024, deadline and contact experienced counsel for guidance and questions related to the pay data reporting requirements.

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Photo of Heather M. Sager Heather M. Sager

Heather Sager’s extensive knowledge of California’s complicated statutory and regulatory requirements for employers is well-regarded by technology, retail, and finance clients alike, from startups to Fortune 500 companies. She has wide-ranging experience litigating complex wage-and-hour matters brought under the federal Fair Labor Standards…

Heather Sager’s extensive knowledge of California’s complicated statutory and regulatory requirements for employers is well-regarded by technology, retail, and finance clients alike, from startups to Fortune 500 companies. She has wide-ranging experience litigating complex wage-and-hour matters brought under the federal Fair Labor Standards Act (FLSA) and similar state laws, including California’s Private Attorneys General Act (PAGA).

Photo of Elizabeth Holland Elizabeth Holland

While attending Stanford Law School, Betsy served as the managing editor of the Stanford Law and Policy Review, was a member of the Women of Stanford Law, participated in the Organizations and Transactions Clinic, and served as a representative member of the…

While attending Stanford Law School, Betsy served as the managing editor of the Stanford Law and Policy Review, was a member of the Women of Stanford Law, participated in the Organizations and Transactions Clinic, and served as a representative member of the Stanford Law Association.