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Employment Law
of employees working in or assigned to a California establishment by job category, race/ethnicity and sex, pay band, and hours worked during a snapshot period in the prior reporting year. Covered employers will now also have to submit the median and mean hourly rate “for each combination of race, ethnicity, and sex” within each job category. Private employers with 100+ employees hired through labor contractors, such as temporary staffing agencies, also must submit a separate pay data report to the CRD. Finally, the date for submission of the report will change from March 31 of each year to the second Wednesday in May, beginning in 2023. EEO-1 reports, which do not contain the required pay data information (pay bands, hours worked, and now the mean and median hourly rate), cannot be submitted in lieu of the pay data report required by the state.
California’s new law allows courts to impose civil penalties of $100 per employee for the first violation for failure to file a pay data report and up to $200 per employee for each subsequent violation. For violations of Labor Code Section 432.3, the new law authorizes the Labor Commissioner to order an employer to pay a civil penalty of no less than $100 and no more than $10,000 per violation.
Michele Ballard Miller, is Chair of Cozen O’Connor’s West Coast Labor and Employment. Contact her at: mbmiller@cozen.com. Elena K. Hillman is Of Counsel at firm. Contact her at: ehillman@cozen.com.
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FDCC ANNUAL INSIGHTS 2023