California CRD Updates Pay Data Reporting FAQs

The California Civil Rights Department (CRD) recently updated their pay data reporting FAQs to address this year’s changes to California’s pay data reporting requirements.

As previously reported, back in September 2022, Governor Newsom signed SB 1162 that, among other things, revised and expanded the state’s pay data reporting requirements. The most notable changes include:

• A new deadline for pay data reports;
• Separate reports for employees hired through labor contractors;
• Inclusion of median and mean hourly rate information; and
• Increased penalties for noncompliance.

Previously, pay data reports were due at the end of March, but going forward, reports will be due the second Wednesday of May annually. This year, reports are due May 10, 2023.

New this year — reporting employers must file a separate “Labor Contractor Employee Report” that covers workers hired through labor contractors in the prior calendar year. CRD’s new FAQs provide helpful guidance on this topic, including information about the labor contractor snapshot period, how to count labor contractor employees for reporting purposes and how to organize the report. Parts II, IV, and V of the FAQs address these details.

Under the SB 1162 amendments, employers are also required to include the median and mean hourly rate for each job category and each combination of race, ethnicity and sex included in the pay data reports. The new FAQs provide an explanation of how employers should make the calculations. For information on these calculations, see Part V of the FAQs.

Penalties for noncompliance have been increased this year. Previously, the CRD could file a civil action against an employer that didn’t submit their pay data report and ask for an injunction requiring the employer to submit the report. SB 1162, however, adds civil penalties to the law, permitting a court to impose a penalty of up to $100 per employee for noncompliance, or up to $200 per employee for subsequent failure to file the required report.

The updated FAQs also state that the CRD intends to provide new versions of pay data resources (e.g., user guide, templates, etc.), which will be available February 1, 2023. Employers should review the FAQs and additional resources on the CRD’s pay data reporting website as they prepare their pay data reports.

James W. Ward, J.D., Employment Law Subject Matter Expert/Legal Writer and Editor, CalChamber

CalChamber members can read more about “Pay Data Reporting” in EEO Reporting Requirements in the HR Library. Not a member? See what CalChamber can do for you.