On September 30, 2020, California enacted SB 973, which requires giant personal employers to report particular pay knowledge to the Division of Truthful Employment and Housing (“DFEH”) by March 31, 2021, and yearly thereafter. SB 973 is designed to establish hidden but persistent racial and gender pay gaps that may end result from unconscious biases or historic inequities. The rule permits for efficient enforcement of equal pay or anti-discrimination legal guidelines. As of February 16, 2021, employers can now submit their 2020 pay knowledge on the Pay Reporting Portal.
WHO IS REQUIRED TO REPORT? Personal employers with 100 or extra U.S. workers and no less than one worker in California at any time through the reporting 12 months and who’re required to file an annual federal EEO-1 are required to report back to DFEH.
“Worker” consists of people on an employer’s payroll for whom employers withhold federal social safety taxes, teleworking workers, part-time workers, workers working inside and outdoors of California, and people on paid and unpaid go away, together with CFRA, being pregnant go away, disciplinary suspension, or some other employer accepted go away of absence.
Employers choose a “Snapshot Interval,” which is a single pay interval between October 1 and December 31 of the reporting 12 months, to establish the workers to be reported since workers will normally change over the course of a 12 months.
WHAT MUST BE INCLUDED IN THE REPORT? 1. Variety of workers by race, ethnicity, and intercourse within the following ten classes: government or senior-level officers and managers, first or mid-level officers and managers, professionals, technicians, gross sales staff, administrative help staff, craft staff, operatives, laborers and helpers, and repair staff; 2. Variety of workers by race, ethnicity, and intercourse whose W-2 earnings fell inside every pay band established by the U.S. Bureau of Labor and Statistics; 3. Whole variety of hours labored by every worker counted in every pay band through the reporting 12 months; 4. Employer’s North American Trade Classification System (“NAICS”) code.
HOW IS THE DATA TO BE REPORTED? DFEH gives a User Guide explaining how an employer ought to create and submit its report. Importing an Excel or .CSV file in line with DFEH templates is really useful, however employers may manually enter their data utilizing the portal’s fillable kind.
WHAT ARE OTHER EMPLOYER CONSIDERATIONS? – Use the three genders California acknowledges, as self-identified by the worker: feminine, male, and nonbinary. – Employers could request an enforcement deferral request earlier than the March 31, 2021 deadline.
Extra data, together with data for employers with a number of institutions inside and outdoors of California, could be discovered on the FAQ page.