January 26, 2023

CRD Issues Updated Pay Data Reporting FAQs

The California Civil Rights Department (CRD) has released new FAQs to assist employers with their pay data reporting obligations. While the FAQs are available now, updated resources for the 2022 Reporting Year will be available on the California Pay Data Reporting Portal by February 1, 2023.  

The California Equal Pay Act prohibits an employer from paying its employees less than that of the opposite sex for equal work. Equal Pay Act mandates were strengthened with the signing of the California Fair Pay Act (SB 1162) which, starting January 1, 2023, requires employers to disclose additional pay data, provide pay ranges for posted positions and increase pay transparency for applicants and employees. As discussed here, the statute also extends record retention requirements for wage and other employment related records from two to three years after termination of employment (as opposed to after creation of the record.) 

Qualified employers – those with 100+ employees (including those with at least one employee in California) – must provide pay and other data information annually to CRD. Pay data reports for the 2022 Reporting Year are due by May 10, 2023.  

Below are a few key issues addressed in the updated FAQs:  

  • Deadline change: Pay data reports covering the 2022 Reporting Year are due by Wednesday, May 10, 2023. Subsequent year filings will be due on the second Wednesday of May. 

  • Labor contractor worker reporting: Reporting employers must file a separate “Labor Contractor Employee Report” that covers workers hired through labor contractors, including farm labor contractors, in the prior calendar year.  

  • Mean and median rates: Employers must calculate and report the mean and median hourly rate of payroll employees and/or labor contractor employees.  

  • Increased penalties for nonfilers: CRD may obtain a monetary penalty against any employer that fails to file a required report, as well as against any labor contractor that fails to supply necessary data to a client employer.  

The CRD has published aggregate results from the 2020 Reporting Year (downloadable infographics and data files aggregated at the statewide level, by industry, and by metropolitan area). The 2021 aggregated results will be published in 2023. Employers are encouraged by the CRD to review these results as they assess their own pay data reports in light of California’s anti-discrimination and equal pay laws. 

Although the deadline for reporting is still months away, employers should begin preparing now by gathering and reviewing relevant data including reviewing the new FAQs and marking their calendars for February 1st to make sure they have access to the latest forms and resources.