The new year has begun and California employers of 100 or more employees should get busy preparing for the annual pay data submission to the Department of Fair Employment and Housing (DFEH).  The deadline is March 31, 2022, and extensions are less likely than last year.  

2022 is the second year that California employers with 100 or more employees and at least one employee in California are required to undertake reporting that parallels the federal Equal Employment Opportunity Commission’s (EEOC) EEO-1 pay data reporting.  The statutory goal is to have employers self-evaluate pay disparities along gender, racial, and ethnic lines to encourage voluntary compliance with equal pay and anti-discrimination laws.

Employers can visit California’s Pay Data Reporting Page for links to California’s Reporting Portal, user guide, template, and FAQs.  As discussed in our previous blog, covered employers must report the pay and hours worked data by location, job category, pay band, sex, race, and ethnicity.  The 100-employee test is measured by a “Snapshot Period”, a single pay period between October 1 and December 31 of the year prior or regular employment of 100 or more employees during the prior year.  This number includes part-time workers, workers on paid or unpaid leave, furlough, or other employer-approved leaves of absence.  Independent contractors should not be included unless there are misclassification concerns. 

As the pandemic brought on an unprecedented number of teleworkers, employers need to keep in mind that some of the remote workers, despite having a non-California address, may still count toward the 100-employee test.  Do not assume that out-of-state employees are not part of the equation.  For employers with establishments outside of California who have remote workers located in California, such employees are counted toward the 100-employee test even though they may not be assigned to a location in California.  

As a reminder, the report will include:

1. The number of employees by race, ethnicity, and sex, during the snapshot period.
2. The number of employees by race, ethnicity, and sex, whose annual earnings fall within each of the pay bands used by the United States Bureau of Labor Statistics.
3. The total number of hours worked by each employee plus paid time off (such as paid sick time, and holiday time).
4. A certification that the information contained in the pay data report is accurate and prepared in accordance with Government Code section 12999 and DFEH’s instructions, and the name, title, signature, and date of signature of the certifying official.
5. The name, title, address, phone number, and email address of someone who can be contacted about the report.
6. A certification that the information contained in the pay data report is accurate and prepared in accordance with Government Code section 12999 and DFEH’s instructions, and the name, title, signature, and date of signature of the certifying official.
7. The name, title, address, phone number, and email address of someone who can be contacted about the report.

For employers that submitted their EEO-1 pay data report to the EEOC in November, the DFEH’s system resembles EEOC’s system so you may have compiled some of the information already.  However, requirements for EEO-1 reporting are not identical to those for DFEH reporting.