As the result of a new law enacted last year, employers in the state of California, beginning on March 31, 2021, will be required to collect and report employee pay data based on race, ethnicity, and sex. The new state pay reporting requirements are similar but not identical to the since discontinued “Component 2” requirements that covered employers nationwide had to report to the Equal Employment Opportunity Commission (EEOC) on their EEO-1 forms for calendar years 2017 and 2018.
The new California pay data reporting requirements are administered and enforced by the state’s Department of Fair Employment and Housing (DFEH), which over the last few weeks has issued interpretive guidance in the form of Frequently Asked Questions (FAQs) posted on a dedicated landing page: California Pay Data Reporting, regarding how state employers will be required to comply. DFEH also plans, by February 1, to issue a User Guide and Template that employers can use to report their pay data, and indicates that the online portal to begin receiving pay data reports will be open on February 15, 2021.
Members of the Center for Workplace Compliance (CWC) can read more here.