Employers with California workers must submit pay data by May 8

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

California regulation requires personal employers with 100 or extra staff and/or 100 or extra staff employed by means of labor contractors to submit info yearly on pay and demographics. 

Whereas the regulation will not be new, a few of the necessities have modified this 12 months, and employers ought to take word, Jacklin Rad, a associate 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 outdoors the state. 

“We’re anticipating that a whole lot of these employers don’t know that they should file,” Rad stated.

A brand new requirement this 12 months is submitting info on distant staff, Rad defined. This consists of the variety of staff who don’t work remotely, the variety of distant staff in California and the variety of distant staff outdoors 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 stated, including, “I have never seen any strong proof or traits indicating that’s truly occurring. I believe that is simply an effort by the state to gather extra info to investigate.”

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

Corporations 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 offer pay information to shopper employers, the regulation agency stated. 

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

Fisher Phillips gives a three-step information for employers.

1. Decide if you must file a report — a payroll worker report and/or a labor contractor worker report — even when the corporate relies outdoors of California. 
2. Establish labor contractors and request the required labor contractor pay information report info from them. 
3. Put together a plan to submit pay information studies earlier than Could 8.