Updated FAQs Provide Guidance about Reporting Requirements
The California Civil Rights Department (CRD) updated its FAQs on employers’ obligations to report workforce information to the state. The recently enacted Senate Bill 1162 modified requirements related to the information qualified employers must report and changed the annual state deadline.
Which Employers Must File?
Effective January 1, 2023, SB 1162 requires all private employers with 100 or more employees to file a “Payroll Employee Report” with the CRD. Also, all private employers with 100 or more workers hired through labor contractors in the prior calendar year must file a separate “Labor Contractor Employee Report” that covers workers hired through labor contractors in the prior calendar year. Out of state employers with 100 or more employees and at least one employee based in California, must also comply with these reporting requirements.
Employers must include their employees assigned to California establishments or working within California. Unlike in the past, employers are not to report employees who are working outside of California and are assigned to an establishment outside of California.
What New Information Does SB 1162 Require?
SB 1162 made several changes to the previous filing requirements set forth by Senate Bill 973. Now, Payroll Employee Reports and Labor Contractor Employee Reports must include the mean and median hourly rate of employee groupings (that is, groupings of employees with the same establishment, pay band, job category, race/ethnicity, and sex). Employers with 100 or more workers hired through labor contractors in the prior calendar year must also disclose the ownership names of all labor contractors used to supply employees. The new categories of information required are listed with the filing template by CRD.
SB 1162 also eliminated the option to use the federal EEO-1 report to meet the state’s requirement. Employers now have to file Payroll Employee Reports and/or Labor Contractor Employee Reports to the CRD. Employers also must file pay information via CRD’s pay data portal. CRD will not accept reports by email or hard copy. Additionally, affiliated companies may not file a combined data report unless the affiliated entities comprise an integrated enterprise under Title VII of the Civil Rights Act of 1964.
What’s the Timespan of the Report?
Employers should provide both the data for the “reporting year” and the data for “snapshot period.” “Reporting Year” refers to the prior calendar year. The “Snapshot Period” is a single pay period between October 1 and December 31 of the reporting year. Employers may choose to report the data of any day within the snapshot period.
For Payroll Employee Reports, the day of the “snapshot period” is used to determine the employees who will be reported. For all employees in the Snapshot Period, the report has to identify each employee’s establishment, pay band, job category, race/ethnicity, sex, pay, pay band, and hours worked.
For Labor Contractor Employee Reports, all labor contractor employees in each labor contractor’s Snapshot Period, identify each labor contractor employee’s establishment, pay band, job category, race/ethnicity, sex, pay, and hours worked.
For additional instruction on filing the report and the breakdown explanation regarding categories of data, employers can find the filing instructions and user guide on the Pay Data Reporting Portal and the sample report templates at the CRD’s website.