The deadline for California employers with 100 or more employees and/or 100 or more workers hired through labor contractors to report pay and other data to the Civil Rights Department (CRD) is May 10th. The CRD has established a web page to view frequently asked questions (FAQs), access the online portal, a user guide, and other resources.
ADP TotalSource® has updated our California (CA) Pay Data reporting to meet the new requirements of SB 973 for mean and median data and ready to support employers required to complete the California Pay Data report.
The Details:
California law requires private employers of 100 or more employees and/or 100 or more workers hired through labor contractors to annually report pay, demographic, and other workforce data to the Civil Rights Department (CRD).
Next Steps for filing:
If you are required to report pay data to the CRD for 2022:
· Determine your “Snapshot Period,” which is a single pay period between October 1 and December 31 of the reporting year (in this case, 2022). The Snapshot Period is used only to identify employees who must be reported on in the pay-data report. Importantly, when identifying the employees to be reported on, it doesn’t matter whether an employee was paid during the Snapshot Period; it only matters whether the employee was employed during the Snapshot Period.
· Determine which establishments you have and gather information about each establishment.
· For all employees in the Snapshot Period, identify each employee’s establishment, job category, race/ethnicity, sex, pay band, and hours worked.
· Register in the portal and provides information about your business, parent/affiliates (if any), and other information.
· When running the Workforce Now fileable report, the output for the 2022 reporting year will include a separate tab labeled “Employer Submission Info” The Employer Information is entered directly in the CRD Pay Reporting Portal. To avoid submission errors, you must delete this Employer Submission Info tab before uploading the file to CRD.
· Provide a Yes or No answer for the required questions in column J and K of the spreadsheet: “Was a California Pay Data Report filed for this establishment last year?”, “Was an EEO-1 Report filed fort his establishment last year?”
· Provide any clarifying remarks and correct any errors identified by the portal.
· Certify the final report and submit by May 10th, 2022.
· Consult legal counsel if you have specific questions about your reporting obligations.
Additional FAQs and Guidance:
What if I currently have 100 employees but did not have 100 employees during the Snapshot Period?
If you did not have 100 employees during your Snapshot Period, you are not required to submit a pay data report.
How should an employer report on an employee who, during the Reporting Year, started out in a California establishment but, during the Snapshot Period, was assigned to an establishment outside of California?
If this payroll employee/labor contractor employee was working within California during the Snapshot Period, the employer is required to report to CRD on this employee even though the employee is assigned to an establishment outside of California. If an employee neither worked in California nor was assigned to an establishment in California during the relevant Snapshot Period, the employee should not be included an employer’s report.
How do I determine an establishment’s “major activity”?
Employers are required to report each establishment’s major activity as part of their pay data reports. The major activity reported for each establishment should be sufficiently descriptive to identify the industry and product produced or service provided. If an establishment is engaged in more than one activity, describe the activity at which the greatest number of employees work. Employers can use the North American Industry Classification System (NAICS) as guidance in describing major activities.
I did not file an EEO-1 Report last year. Does that mean I do not need to file a pay data report with CRD?
No. A private employer that meets the threshold number of payroll employees or labor contractor employees is subject to California’s pay data reporting requirement, regardless of whether it is required to file an annual EEO-1 Report pursuant to federal law. Gov. Code § 12999(a). For more information, see the FAQ “How did Senate Bill 1162 change the pay data reporting system?”
We understand navigating through new regulations can be challenging. If you are unsure and need additional support, please call our dedicated line at 1-866-405-4713 or send us an email at hrotaxuiclaims@adp.com. A member of our team will be happy to assist with any questions.