Time is running out for California employers to meet the deadline for submitting their 2022 pay data through the Civil Rights Department (CRD) portal. The clock is ticking, and employers must act fast to avoid hefty penalties for non-compliance. Although employers may be granted a deferral, they must be registered on the portal and make a request through it. Access to the portal is available on the CRD’s website: California Pay Data Reporting | CRD.
The Pay Transparency and Reporting Law, or SB 1162, is a new law that affects employers with employees in California, and it could cost a pretty penny if you fail to comply. The law amended California law in Section 12999 of the Government Code and Section 432.3 of the Labor Code, and it became effective on January 1, 2023.
The law mandates that private employers with at least 100 employees must submit a complex pay data report to the CRD, covering the prior calendar year. Additionally, these employers must submit a separate pay data report for the employees hired through labor contractors in the prior calendar year. Furthermore, if an employer has at least one employee living or working in California, they must submit the pay data report.
The deadline for submitting the pay data report is May 10, 2023.
However, if employers need more time to comply, they can request an “enforcement deferral” from the CRD for their Labor Contractor Employee Reports. As of April 18th, the CRD has been accepting deferral requests, and once granted, they will defer seeking an order of compliance for the employer to file its Labor Contractor Employee Report until July 10, 2023. Employers registered in the pay data reporting portal can only make these requests, and CRD will only accept requests through the portal.
Here are some important reminders for employers:
Employers who need help complying with the new law can turn to experts who offer step-by-step guidance while collecting their employment data. Additionally, they can get extensive validation by double-checking their data, ensuring that their Pay Data Reporting is filed correctly. After the careful reconciliation of data, experts can upload the Pay Data Reporting data into the reporting system and provide a detailed confirmation of the submission.
In conclusion, California employers must take the necessary steps to comply with the Pay Transparency and Reporting Law before the deadline of May 10, 2023. Failure to do so could result in significant penalties and fines. Make sure to request a deferral through the CRD portal if needed, and seek assistance from experts to ensure compliance with the law.