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CA Employers Have March 31 Deadline for New SB 973 Pay Data Reporting

by Jenn McCabe, Shannon Oswald
February 16, 2021

Heads up California employers. There is new legislation regarding employer requirements for reporting pay and demographic data to the state Department of Fair Employment and Housing (DFEH). Employers must file this report by March 31, 2021, and update and submit the report on an annual basis going forward.

CA Senate Bill 973 affects non-government California employers who have 100 or more employees nationally and who are required to file an annual EEO-1 report. CA employers with fewer than 100 employees may also be required to file with the DFEH if the company is owned by or affiliated with another with another company and they have a combined total of 100 or more employees.

Necessary pay data to report includes employee counts by race, ethnicity and gender. This data is also required to be broken out by job categories; these categories are further identified within the DFEH User Guide (see below). The report must also break out data by other factors, such as gender identity, temporary status, etc.

The DFEH has provided an online User Guide and FAQs about this new legislation/process. The guidelines also include additional details, and we recommend that employers (particularly those who currently file an EEO-1 report) look closely at them to determine their best route to compliance for this requirement.

Action is required by March 31, so now is a good time to get started. The pay reporting portal will be open for employers to submit reports starting February 16.

For questions or help with compliance, contact our HR Outsourcing experts.


February 16, 2021

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Author
Jenn McCabe - Partner, Outsource HR - El Segundo CA | Armanino
Partner
Shannon Oswald - Director, Consulting | Armanino
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