As the most populous state in the US and a hub for diverse industries, California has long been at the forefront of implementing regulations that promote fairness and equity in the workplace. One such regulation is the California Pay Data Reporting law, which requires employers to submit detailed information about their employees' salaries and other relevant data to the state's Department of Fair Employment and Housing (DFEH). In this article, we will explore what employers need to know about this new regulation, its implications, and how it can impact their organizations.
The California Pay Data Reporting law, also known as SB 775, was signed into law by Governor Gavin Newsom in September 2020. The law aims to address the persistent pay disparities that exist in the state, particularly among women and underrepresented groups. By collecting and analyzing pay data, the DFEH can identify patterns of pay inequity and take enforcement actions against employers who fail to comply with equal pay laws. This regulation is a significant step towards promoting pay transparency and equity in California workplaces.
Who is Covered by the Regulation?
The California Pay Data Reporting law applies to private employers with 100 or more employees in California. This includes companies that have a physical presence in the state, as well as those that employ remote workers who reside in California. The law also applies to state and local government agencies, but not to federal contractors or subcontractors.
What Data Must be Reported?
Employers covered by the regulation must submit a pay data report to the DFEH by March 15th of each year. The report must include the following information:
- The employer's name and address
- The number of employees in each job title
- The number of employees in each job title by sex, race, and ethnicity
- The median and mean hourly rate for each job title by sex, race, and ethnicity
- The number of employees in each job title who are exempt from overtime pay
The report must be submitted electronically through the DFEH's online portal, and employers must use a specific template provided by the agency.
How Will the Data be Used?
The DFEH will analyze the pay data reports to identify patterns of pay inequity and take enforcement actions against employers who fail to comply with equal pay laws. The agency may also use the data to:
- Identify industries and job titles with significant pay disparities
- Develop targeted enforcement strategies
- Provide guidance and technical assistance to employers on equal pay practices
- Monitor compliance with the California Equal Pay Act
What are the Penalties for Non-Compliance?
Employers who fail to submit a pay data report or provide incomplete or inaccurate information may be subject to penalties and fines. The DFEH may also require employers to:
- Pay back wages and interest to employees who were underpaid
- Implement changes to their pay practices and policies
- Provide additional training to employees on equal pay laws
| Reporting Requirements | Details |
|---|---|
| Who is covered? | Private employers with 100+ employees in California |
| What data must be reported? | Job title, employee count, sex/race/ethnicity, median/mean hourly rate, exempt employees |
| When is the report due? | March 15th of each year |
Key Points
- The California Pay Data Reporting law requires employers with 100+ employees in California to submit detailed pay data to the DFEH.
- The report must include job title, employee count, sex/race/ethnicity, median/mean hourly rate, and exempt employees.
- The DFEH will analyze the data to identify patterns of pay inequity and take enforcement actions against non-compliant employers.
- Employers who fail to comply may be subject to penalties, fines, and back wages.
- Proactive steps, such as reviewing pay practices and providing training, can help employers ensure compliance and avoid potential issues.
In conclusion, the California Pay Data Reporting law is a significant regulation that aims to promote pay transparency and equity in the state. Employers covered by the law must take proactive steps to ensure compliance, including reviewing and updating their pay practices and policies, conducting regular audits, and providing training to employees on equal pay laws. By understanding the requirements and implications of this regulation, employers can avoid potential penalties and fines, while also promoting a fair and equitable work environment for all employees.
What is the California Pay Data Reporting law?
+The California Pay Data Reporting law, also known as SB 775, requires private employers with 100 or more employees in California to submit detailed information about their employees’ salaries and other relevant data to the state’s Department of Fair Employment and Housing (DFEH).
Who is covered by the regulation?
+The regulation applies to private employers with 100 or more employees in California, including companies with a physical presence in the state and those that employ remote workers who reside in California.
What data must be reported?
+Employers must report the employer’s name and address, the number of employees in each job title, the number of employees in each job title by sex, race, and ethnicity, the median and mean hourly rate for each job title by sex, race, and ethnicity, and the number of employees in each job title who are exempt from overtime pay.