California Pay Data Reporting Due May 10, 2023

Monday, April 24, 2023

We are only three weeks away from the 2023 deadline for CA pay data reporting which lands on May 10, 2023.  Reminder: California law requires private employees with 100 or more employees to annually report pay, demographic, and other workforce data to the Civil Rights Department.  This law also applies to companies with more than 100 contractors, which must be reported separately and certified by the employer. Labor contractors are required to supply the necessary data to the client employer.

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The goal of this law is to encourage employers to self-assess pay disparities based on gender, race, and ethnic lines in order to promote voluntary compliance with equal pay and anti-discrimination laws. Legally-mandated pay data reporting provides a snapshot of the employer’s payroll for specific pay periods and allows for grouping of employees by job category, pay band, race, ethnicity, and sex so that reporting can show the number of employees, mean/median hourly rates, and total hours worked for each group.

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At CandorIQ, we built our platform from the bottom up to enable real-time assessment of employee pay data, including non-hourly compensation such as equity and variable bonus. Beyond what is required under CA law, we also allow employers to assess pay fairness based on additional categories, such as age and sexual orientation. Our goal is to enable executive leadership, as well as HR team members and hiring managers, to have the data they need to build an equitable workplace to ensure recruitment and retention of top talent.

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It is important to note that it is the employer that is on the hook to certify pay data under Government Code 12999, even if you use a Professional Employer Organization (PEO) or Human Resource Outsourcing Organizations (HRO) to manage your workforce.  Fines and penalties assessed for late or non-compliance are also levied against the employer and not the PEO, HRO, or the labor contractor.

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The CA Civil Rights Department provides more information including guides and templates to understand this reporting requirement at their website: https://calcivilrights.ca.gov/paydatareporting/

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