Employers with California staff should submit pay knowledge by Could 8

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California employers have till Could 8 to submit final 12 months’s pay knowledge to the state. The reporting portal opened Feb. 1. 

California regulation requires non-public employers with 100 or extra staff and/or 100 or extra staff employed by labor contractors to submit data yearly on pay and demographics. 

Whereas the regulation just isn’t new, a few of the necessities have modified this 12 months, and employers ought to take word, Jacklin Rad, a accomplice at Fisher Phillips, informed HR Dive. Employers additionally want to acknowledge that even when they solely have one worker in California, they need to abide by the reporting necessities — even when all their different staff reside exterior the state. 

“We’re anticipating that lots of these employers don’t know that they should file,” Rad mentioned.

A brand new requirement this 12 months is submitting data on distant staff, Rad defined. This contains the variety of staff who don’t work remotely, the variety of distant staff in California and the variety of distant staff exterior of California assigned to a California website. 

“We expect it is as a result of the state believes there could also be pay discrepancies for workers who’re distant versus their colleagues who’re within the workplace,” Rad mentioned, including, “I have never seen any strong proof or developments indicating that’s truly occurring. I believe that is simply an effort by the state to gather extra data to investigate.”

The state additionally will not permit corporations to report “unknown” race/ethnicity for labor contractor staff.

Firms who fail to adjust to necessities can face a $100 civil penalty per worker, and $200 per worker for subsequent failures to file, Fisher Phillips defined in an employer information. These penalties additionally apply to labor contractors who fail to supply pay knowledge to shopper employers, the regulation agency mentioned. 

“All of us on this trade are simply ready to see what that form of enforcement is like,” Rad mentioned. 

Fisher Phillips presents a three-step information for employers.

1. Decide if that you must file a report — a payroll worker report and/or a labor contractor worker report — even when the corporate relies exterior of California. 
2. Determine labor contractors and request the required labor contractor pay knowledge report data from them. 
3. Put together a plan to submit pay knowledge experiences earlier than Could 8.