Update: New State Obligations for Reporting California Pay Data

The Wednesday, May 8, 2024 filing deadline for organizations with 2023 California Pay Data Reporting obligations is rapidly approaching. Is your data collected and cleansed, and are you aware of the new labor contractor requirements for this filing year? Read on to discover key changes to this year’s reporting regulations.

Changes in 2024: New Remote Worker Reporting Requirements and More

As with last year, private employers with 100 or more employees and/or 100 or more workers hired through labor contractors must annually report pay, demographic, and other workforce data to the California Civil Rights Department (CRD), if they have at least one employee who works in the state. All changes implemented for the 2022 reporting year remain in effect, and a few new requirements have been added for the 2023 reporting year. These changes are:

  • Employers must now report whether employees worked remotely, including:
    • The number of employees that do not work remotely
    • The number of remote employees located within California
    • The number of remote employees located outside of California
  • For labor contractor employee reports, it’s no longer permissible to report “unknown” for race/ethnicity or sex
    • CRD’s preferred method for data collection is voluntary self-identification
    • However, if a worker declines to provide the information, employers must still report race, ethnicity, and sex

As a reminder, filing a federal EEO-1 report is not a substitute for the California regulations, and reports must be filed online through the CRD portal.

If you need a refresher on the basics of California Pay Data Reporting and a further overview of what has changed, see the FAQ section from the California Civil Rights Department (CRD) website.

Essential Information on Enforcement and Penalties

All employers subject to California’s pay data reporting laws should be aware that CRD is reported to be pursuing companies that do not file. If an employer fails to submit a pay data report by the filing deadline, CRD has the authority to seek an order requiring that employer to do so.

In addition, CRD can also seek civil penalties of $100 per employee, with the penalties increasing to $200 per employee for failure to file a required report. Note that these penalties can also be levied against a labor contractor who has failed to provide necessary pay data to the client employer.

About the Affirmity California Pay Data Reporting Module

Affirmity’s California Pay Data Reporting module assists clients by simplifying the process of importing, transforming, and managing labor data. It seamlessly creates submission files as required by state regulations. The module is intuitive and provides fully documented instructions as well as just-in-time training videos embedded within the application.

Affirmity’s California Pay Data Reporting module has been updated to reflect the latest changes described above, and our team of consultants stand by ready to assist you.

As many companies experienced last year, the collection of the necessary data can be time consuming and may require cooperation with external partners. If you haven’t started the data collection process already, you are encouraged to do so immediately.

To learn more about Affirmity’s California Pay Data Reporting Module, or to talk to an expert, please contact us today.

About the Author

Allen Appleby HeadshotAllen Appleby oversees product management at Affirmity with direct responsibility for establishing product vision, strategy, and roadmaps. He’s a seasoned product management leader who brings 20+ years of experience across multiple industries. He helps clients achieve positive business outcomes by ensuring Affirmity’s products deliver value across their affirmative action, EEO, and diversity and inclusion needs. Allen holds a Bachelor of Science in Business, an MBA in Marketing, and is Pragmatic Marketing certified.

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