In Hill Farrer’s October 11, 2022 employment update, we discussed Senate Bill (SB) 1162, which was signed into law on September 27, 2022 and expanded employers’ pay data reporting requirements. This serves as a reminder of the upcoming deadline of May 10 2023 for private employers with 100 or more employees to submit 2022 pay data reports to the California Civil Rights Department that comply with this new law.
While employers should be familiar with the existing law that requires employers to submit pay data reports, SB 1162 modifies and expands employers’ obligations relating to pay data reporting. Specifically, SB 1162 made the following changes to the pay data reporting laws:
- Whereas the previous law required employers to file annual pay data reports with the number of employees by race, ethnicity, and sex in specific job categories, SB 1162 now requires employers to also include the median and mean hourly rate for each combination of race, ethnicity, and sex within each job category.
- In addition to the pay data reports discussed above, employers must also submit a separate pay data report for employees hired through “labor contractors,” such as temporary employee staffing agencies. The law requires employers to identify the labor contractors used to supply employees in their pay data reports.
- Employers are now required to submit their reports to the California Civil Rights Department (formerly the California Department of Fair Employment and Housing) regardless of whether they file federal Employer Information (EEO-1) reports. The EEO-1 reports can no longer be used to satisfy the California pay data reporting requirements.
Employers who fail to file the required pay data reports can face civil penalties of up to $100 per employee (and penalties of up to $200 per employee for subsequent violations).
Contact Hill Farrer for Further Information
Please contact your Hill Farrer attorney or any member of our Labor and Employment department at (213) 620-0460 to discuss how to comply with this new law and submit compliant pay data reports.