California Guidance on Pay Data Reports

Thursday, December 3, 2020

The deadline for employers to adjust to California’s pay information reporting requirement (Senate Invoice 973) and submit pay information to the Division of Honest Employment and Housing (DFEH) is March 31, 2021.

The DFEH has launched an data web page that gives wanted readability on sure obligations and has issued extra steering on the pay information report’s contents — largely confirming sure assumptions and clarifying different necessities.

Submission will resemble EEO-1 Reviews. Employers will report on its workforce by selecting a single pay interval between October 1 and December 31 of every “Reporting Yr,” known as the “Snapshot Interval.” The submission will embody the variety of workers by race, ethnicity, and intercourse in every of the 10 EEO-1 Job Classes (following the EEO-1 Instruction Booklet) and inside every of the “pay bands” utilized by the U.S. Bureau of Labor Statistics Occupational Employment Statistics classifications (despite the fact that California has a better minimal wage):

$19,239 and below

$19,240 – $24,439

$24,440 – $30,679

$30,680 – $38,999

$39,000 – $49,919

$49,920 – $62,919

$62,920 – $80,079

$80,080 – $101,919

$101,920 – $128,959

$128,960 – $163,799

$163,800 – $207,999

$208,000 and over

The submission additionally will embody:

Whole variety of hours labored by every worker in every pay band;

“Reporting Yr,” “Snapshot Interval,” “Report Sort (institution or consolidated),” and whole variety of stories submitted by the employer;

Employer’s identify, deal with, headquarters’ deal with (if completely different), Employer Identification Quantity, North American Business Classification System (NAICS) Code, and Dun and Bradstreet Quantity;

Variety of workers inside and out of doors of California;

Variety of institutions inside and out of doors of California;

Whether or not the employer is a state contractor;

Identify and deal with of the employer’s dad or mum firm or corporations, if relevant;

For a multiple-establishment employer’s institution stories, the institution’s identify, deal with, variety of workers, and main exercise;

For a multiple-establishment employer’s consolidated report, the names and addresses of the institutions lined by the consolidated report;

Any clarifying remarks;

Certification that the data is correct; and

Data on an organization contact for the submission.

Multi-establishment employers file a number of stories. Multi-establishment employers should file a number of stories — a consolidated report and one for every institution.

Workers exterior California “rely” towards 100-employee threshold. Each California and non-California workers rely towards figuring out if an employer meets the 100-employee threshold. Non permanent workers on payroll additionally “rely” towards the 100-employee threshold. Furthermore, an employer meets the 100-employee threshold by using 100 or extra workers throughout the “Snapshot Interval” or by recurrently using 100 or extra workers throughout the reporting 12 months. Employers could not cherry-pick their snapshot interval to keep away from the reporting requirement.

Employers could exclude out-of-state workers from the submission. Not all workers should be included within the pay information reporting. Solely “workers assigned to California institutions” should be included, however employers “could report back to DFEH on its institutions and workers” exterior of California. Workers teleworking from different states however “assigned to” a California institution should be included within the report for his or her assigned institution. Workers teleworking in California however assigned to institutions in different states should be reported in an institution report masking solely “these workers teleworking from California and who’re assigned to a single institution exterior of California or all workers assigned to that institution exterior of California.” The DFEH offers the next instance:

If an employer has one institution in California with 50 workers (with three employees telecommuting from Nevada throughout the Snapshot Interval) and one institution in Nevada with 50 workers (with three employees telecommuting from California throughout the Snapshot Interval), the employer would submit (1) an institution report for his or her California institution that covers all 50 workers, together with these teleworking from Nevada; (2) an institution report for his or her Nevada institution that covers both solely the staff teleworking from California or all 50 workers assigned to the Nevada institution; and (3) a consolidated report that features both all 53 workers in/assigned to California or all 100 workers.

In keeping with the steering, this flexibility is meant to allow employers to conform within the method that’s least burdensome.

DFEH anticipates choice to report non-binary workers. The DFEH additionally contemplates reporting in a way that allows California employers to report females, males, and non-binary workers individually.

The DFEH is anticipated to launch extra steering earlier than the March submission deadline.