Labor Contractor Employee Pay Data Report Deferral Available

This year, large employers must submit their California pay data reports by May 10, 2023 — a deadline that is quickly approaching. However, the California Civil Rights Department (CRD) recently announced that employers can apply for a two-month deferral to comply with pay data reporting — but only for labor contractor employee reports. 

As previously reported, in September 2022, Governor Newsom signed SB 1162 that, among other things, revised and expanded the state’s pay data reporting requirements for employers with 100 or more employees.

This year, one of the most notable changes requires employers with 100 or more workers hired through labor contractors to file separate labor contractor employee reports. These reports must contain much of the same information required in payroll employee reports, including each employee’s establishment, job category, race/ethnicity, sex, pay, pay band, hours worked and hourly rates. To gather all of this information, employers have to work with their labor contractors, who are required by law to provide this information. However, this can be complicated, especially if a client employer uses multiple contractors and/or if those contractors use subcontractors, etc.

To help, the CRD recently updated its pay data reporting FAQ page to state that beginning April 18, 2023, it will consider an employer’s request to defer their labor contractor employee report through Monday, July 10, 2023. Note that deferrals are only available for labor contractor employee reports — not for reports covering an employer’s payroll employees. All deferral requests must be submitted by May 10, 2023.

Employers can only submit deferral requests through the CRD’s pay data reporting portal; the CRD will not consider requests submitted through any other methods, including a request submitted by a third party on behalf of the employer, such as a professional employer organization.

Employers are strongly encouraged to review the CRD’s pay data reporting website and resources when compiling both their payroll employee and labor contractor employee reports, if applicable. There, employers can access the portal, a detailed user guide, and sample Excel and .csv templates. Also available are frequently asked questions that address many of the subtleties and nuances employers may encounter in this process.

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

CalChamber members can read more about “Pay Data Reporting in California” in EEO Reporting Requirements in the HR Library. Not a member? Learn about the benefits of membership.