California Pay Data Reporting Law 2022
Private businesses with more than 100 employees and at least one employee in California, must file pay data reports with the Department of Fair Employment and Housing DFEH. The deadline for submitting 2021 data is due on April 1st, 2022.
This reporting requires similar data as the EEO-1 pay data reports due on a federal level. However, it is important to note that EEO-1 reporting deadline now extends to May 17th, 2022, due to the pandemic. Whereas it typically is collected at the same time as California pay data reports.
SB 973
California’s SB 973 passed in 2020, and mandates covered businesses to report information regarding their employees’ pay and hours worked concerning the following:
- Establishment
- Job category
- Sex
- Ethnicity
- Race
The bill aims to eliminate unjustified pay differences based on race, ethnicity, and gender. Having this data at hand helps identify where the problem lies and brings light to areas where unconscious biases may exist. The pay data reporting is due every year for the previous year and is overssen by the DFEH. They also regulate the Fair Employment and Housing Act and the California Equal Pay Act.
In 2021, SB 973 saw the following changes implemented by the DFEH:
- Updated the deadline to April 1st with no deferral periods
- Created a new process for registration. This allows employers to view their completed and certified pay data reports.
- They updated their user guide for the 2021 reporting year
- A new interface for employers to provide information by answering a series of questions. (It is important to note that certain pieces of data still require manual entry.)
- Updated the pay bands with higher wage intervals.
Additionally, the CA pay data reports must be certified by a company official, ensuring that the report is accurate and was prepared in accordance with DFEH guidelines. The company official must abide by the following:
- Have the authority to file the report on behalf of the employer
- Have knowledge of the reported information or receive the information from someone with knowledge of the reported data.
- Must have reviewed the data before certifying its accuracy.
Pay bands
California employers need to report on their workforce by choosing a single pay period or snapshot period-from the fourth quarter of each reporting year. When reporting in 2022, the information will be based on 2021.
The information then must include the number of employees by race, ethnicity, and sex in each job category and within each of the pay bands which have been updated as follows:
We always recommend that employers speak with a trusted expert or partner to ensure the reports that they are submitting are in compliance with DFEH standards and requirements. Similarly, employers can visit the DFEH’s site for further updates on data collection and filing assistance.
Is there anything Payroll Systems can help you with as you accommodate rapid legislation changes? Looking for robust payroll and HR reporting tools for your organization? Reach out and talk to us about the easy-to-scale solutions you need for your business.
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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.