Update on California Pay Data Reporting (2022 Filing Year)

The state of California has required employers that meet certain guidelines to report pay data for the past two years. However, in 2022, it made changes to its pay data reporting regulations, as amended by Senate Bill 1162, and these changes take effect with the 2022 filing year. Here is a summary of what’s new that companies need to know about.

New Deadline

The filing date is now May 10 and will be the second Wednesday of May each year going forward.

Who Must File

  • Private employers with at least 100 employees or more must file a Payroll Employee Report (this is similar to past years).
  • Private employers with at least 100 workers hired through labor contractors (with at least one in California) must file a Labor Contractor Employee Report.
    • This is new for 2022 and companies should begin planning now to collect this data from labor contractors.
    • Note that labor contract employees located inside and outside of California are counted when determining if an employer has 100 or more labor contract employees.
    • Part-time labor contract employees and those on paid or unpaid leave should also be counted.

Mean and Median Calculations

Reports must now include the mean and median hourly rate of employees by establishment, job category, race/ethnicity, and sex.

Penalties

The California Civil Rights Department is now authorized to obtain penalties against employers that fail to comply. The penalty is $100 per employee which increases to $200 per employee for subsequent violations.

Please look for additional information in the near future as further details become available.

Next Steps

If you would like to read more about California Pay Data requirements, please visit their website.

Affirmity has already been researching what has been published, and as all details are communicated, Affirmity will begin the process of updating our software to assist clients in meeting their pay data submission obligations.

With Affirmity’s support, you’ll always be kept informed about upcoming changes to your reporting obligations. Contact us today and find out how we can help.

Photograph of Allen Appleby, Manager, Product Management at AffirmityAbout the Author

Allen Appleby oversees product management at Affirmity with direct responsibility for establishing product vision, strategy, and roadmaps. He’s a seasoned product management leader who brings 20+ years of experience across multiple industries. He helps clients achieve positive business outcomes by ensuring Affirmity’s products deliver value across their affirmative action, EEO, and diversity and inclusion needs. Allen holds a Bachelor of Science in Business, an MBA in Marketing, and is Pragmatic Marketing certified.

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