New Guidance Provided by the California Civil Rights Department on Pay Data Reporting
California Civil Rights Department Offers Fresh Instructions on Salary Data Submission
Pay Data Reporting in California continues to be an evolving and consistent headache for companies. At TCWGlobal, our commitment to our clients leads us to stay on top of any updates or changes to the Labor Contractor Employee Reporting, as well as any updates that will help our clients stay compliant with the California Civil Rights Division’s (“CRD”) pay data regulations.
Last year, we at TCWGlobal provided our clients with convenient access to self-service reporting templated to ensure they could timely comply with and file Labor Contractor Reports. Our knowledgeable customer service team was also readily available to take the guess work out of managing this new reporting requirement. This year, we will continue to guide our clients through the recent changes to the reporting templates and update addressed in the new FAQs released on January 31, 2024, to make sure compliance with the California Civil Rights Department’s (“CRD”) new guidance and requirements is met by the May 8, 2024, reporting deadline.
This year, the CRD continues to require Pay Data reporting on both internal employees of a company (defined as Payroll Employees) and payrolled or staffed workers performing work for the company that are employed by a third-party Employer of Record or Staffing Agency (defined as Labor Contractor Employees). TCWGlobal has reviewed the CRD’s updated FAQs and pay data reporting templates, and will have updated self-service reporting available in the next few weeks to ensure it provides the additional categories of data and is formatted to make our clients’ filing of their Labor Contractor Employee Report a breeze. Have questions about the reporting? Reach out anytime to hello@tcwglobal.com or your TCWGlobal Account Manager for assistance.
One of the critical new requirements this year is remote worker reporting obligations for both reports. Companies are now required to provide the (1) number of employees and labor contractor workers who do not work remotely, (2) the number of remote employees and workers located within California, and (3) the number of employees and labor contractor workers located outside California. To be considered a fully remote worker, they must not expect to report in person to a physical establishment regularly.
The second new requirement for the Labor Contractor Report, is that this report can no longer report “unknown” regarding race, ethnicity, or sex. Although worker self-reporting is the preferred method for collecting this information, even if a worker declines to provide their demographic data, the company and labor contractor providing the data must nonetheless report it.
Pay Data Report must be submitted through CRD’s reporting portal by May 8, 2024, and unlike last year, it does not appear that the CRD will be granting deferral requests. Consequently, companies should be prepared to file their reports no later than the May 8th deadline or face civil penalties of up to $100 per employee for the first failure to report.
TCWGlobal is committed to ensuring our clients stay up-to-date and compliant with the latest regulations, including pay data reporting updates. We are ready to lead clients through another year of ever more complex pay data reporting.
If you need assistance with your Pay Data Reporting or would like more information on how partnering with TCWGlobal can help ensure compliance with the CRD’s regulations, TCWGlobal’s support team is here to help. They can be reached at (858) 810-3000 or email us at hello@tcwglobal.com.
For more information on Pay Transparency, and California’s Pay Data Reporting requirements, please see the resources available on our website: https://www.tcwglobal.com/blog/labor-contractor-employee-reports
https://www.tcwglobal.com/blog/what-is-pay-transparency-and-is-your-company-ready
