New Year, Same Old California Pay Data Reporting Requirements
After many delays, employers nationwide just filed their 2020 EEO-1 reports in November. But it’s already time for California employers to begin preparing their annual pay data submission to the Department of Fair Employment and Housing (DFEH).
In 2020, California Governor Gavin Newsom signed into law Senate Bill (SB) 973, which creates massive pay reporting requirements for California employers that also file EEO-1 Reports. Under SB 973 private employers with 100 or more employees and at least one employee in California must report certain pay and related data to DFEH.
The DFEH has launched an information page that provides clarity on certain obligations and issued additional guidance on the pay data report’s contents and filing mechanics—largely confirming certain assumptions and clarifying other requirements. The page also provides templates for submitting information and a link to the Pay Reporting Portal.
The Agency regularly updates this information page, so check back frequently to stay current.
The deadline for filing a pay data report with DFEH is annually on March 31.
While March may seem like a long time from now, the information required for the reports is comprehensive and may involve information from many employee systems, such as HRIS, payroll, and timekeeping systems. Employers should consider starting well in advance of the deadline.
The Pay Data Report
As our free webinar from last spring explains, employers must report on their workforce by choosing a single pay period, or “Snapshot Period,” during Q4 of each “Reporting Year”—here, 2021. That’s the “who.”
For the “what,” the submission must provide the number of employees by race, ethnicity, and sex in each of the 10 EEO-1 Job Categories (following the EEO-1 Instruction Booklet) and within each of the “pay bands” used by the U.S. Bureau of Labor Statistics Occupational Employment Statistics classifications.
It must also include:
Total number of hours worked by each employee in each pay band;
“Reporting Year,” “Snapshot Period,” “Report Type (establishment or consolidated),” and the total number of reports submitted by the employer;
Employer’s name, address, headquarters’ address (if different), Employer Identification Number, North American Industry Classification System (NAICS) Code, and Dun and Bradstreet Number;
Number of employees inside and outside of California;
Number of establishments inside and outside of California;
Whether the employer is a state contractor;
Name and address of the employer’s parent company or companies, if applicable;
For a multiple-establishment employer’s establishment reports, the establishment’s name, address, number of employees, and major activity;
For a multiple-establishment employer’s consolidated report, the names and addresses of the establishments covered by the consolidated report;
Any clarifying remarks;
Certification that the information is accurate; and
Information on a company contact for the submission.