Thursday, October 8, 2020
On September 30, 2020, California Governor Gavin Newsom signed California Senate Invoice 973 into regulation as Authorities Code Title 2, Division 3, Half 2.8, Chapter 10, § 12999. The invoice authored by Senator Hannah-Beth Jackson (Santa Barbara) is titled “Employers: annual report: pay knowledge,” and it states that whereas “progress [has been] made in California in recent times to strengthen California’s equal pay legal guidelines,” there’s nonetheless a major gender pay hole and for girls of shade that pay hole is larger. To handle these pay points, the California Authorities Code’s new part 12999 requires pay knowledge reviews from coated employers and delegates further powers to the California Division of Honest Employment and Housing regarding the brand new pay knowledge reporting requirement. Part 12999 requires coated employers to file pay knowledge reviews no later than March 31, 2021, and on or earlier than each March 31 thereafter.
The language within the new regulation means that the California pay knowledge reviews will carefully resemble the U.S. Equal Employment Alternative Fee’s 2017 and 2018 Part 2 (pay knowledge) EEO-1 reviews that coated employers have been required to file throughout the 2019 EEO-1 submitting season. An employer is in compliance with the submitting requirement if it submits a duplicate of its annual EEO-1 report containing the identical or considerably the identical info required by the brand new regulation. The knowledge required consists of: (1) “[t]he variety of staff by race, ethnicity, and intercourse in every of [10 specified job] classes; and (2) “[t]he variety of staff by race, ethnicity, and intercourse, whose annual earnings fall inside every of the pay bands utilized by america Bureau of Labor Statistics within the Occupational Statistics survey.”
Whereas the California pay knowledge submitting guidelines and directions haven’t but been written, one huge query considerations which employers are coated and for which areas they need to file reviews. A coated employer is a non-public employer that has 100 or extra staff and that’s required to file the EEO-1 report below federal regulation. Whereas a California-headquartered employer will presumably be required to file reviews for all coated California institutions, will that very same employer be required to file reviews for areas exterior California? Equally, will a non-California integrated group with 100 or extra staff inside California be required to file reviews for its California and non-California institutions? Some commentators have recommended that that is all a chance primarily based on the brand new regulation’s definitional language, however the scope of the submitting requirement is just not clear at this level.
Whereas California employers are ready for remaining steering on the pay knowledge reporting necessities and submitting strategies, they might wish to start gathering pay knowledge for calendar yr 2019 specializing in gender, race/ethnicity, EEO classes, and the pay bands utilized by america Bureau of Labor Statistics within the Occupational Employment Statistics survey.
© 2020, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.Nationwide Legislation Evaluate, Quantity X, Quantity 282