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Navigating the California Pay Data Reporting Requirement

California Pay Data Requirement

Beginning in 2021, California employers with 100 or more employees will be required to submit annual pay data reports, due by March 31 of every year. These pay data reports will be structured very similarly to the EEO-1 Component 2 report that was filed in September 2019.

The report due on/before March 31, 2021 will be based off of a single pay period between October 1 and December 31 of 2020 - this is the "snapshot period" referred to on the filing website. The report will mirror the EEO-1 report by requiring covered entities to report the number of employees by race, ethnicity and sex in each of the 10 EEO-1 job categories. Furthermore, the information must be reported by "pay band", much like the 2019 EEO-1 Component 2 report. The pay bands are as follows:

$19,239 and under

$19,240 – $24,439

$24,440 – $30,679

$30,680 – $38,999

$39,000 – $49,919

$49,920 – $62,919

$62,920 – $80,079

$80,080 – $101,919

$101,920 – $128,959

$128,960 – $163,799

$163,800 – $207,999

$208,000 and over

Unfortunately, the report will also require the total hours worked by employees in each pay band as well.

Multi-Establishment Employers

Multi-establishment employers must file a report for each establishment and a consolidated report. All employees (both those inside and outside of California) "count" toward the 100-employee threshold. However, employers may exclude out-of-state employees from the submission. California's Department of Fair Employment and Housing (DFEH) provides the following helpful example:

If an employer has one establishment in California with 50 employees (with three workers telecommuting from Nevada during the Snapshot Period) and one establishment in Nevada with 50 employees (with three workers telecommuting from California during the snapshot period), the employer would submit (1) an establishment report for their California establishment that covers all 50 employees, including those teleworking from Nevada; (2) an establishment report for their Nevada establishment that covers either only the employees teleworking from California or all 50 employees assigned to the Nevada establishment; and (3) a consolidated report that includes either all 53 employees in/assigned to California or all 100 employees.

DFEH is also anticipating the option to report non-binary employees. This is a change from the standard EEO-1 reporting but has been a topic of discussion in recent years. A User Guide, Template and FAQ are now available via the California DFEH website.

Again, this year's deadline to file the California Pay Data Report will be March 31, 2021. TAMS Group is asking all of its partners to reach out today for further information in order to make the process as seamless as possible. Don't delay and contact TAMS today!