California employers working to comply with the new requirement to submit pay data reports for their Labor Contractor Employees may have some relief in sight. The California Civil Rights Department (“CRD”) recently announced that it will consider requests for deferrals of the date on which the CRD will enforce the requirement that employers submit Labor Contractor Employee Reports (thus effectively granting employers an additional period of time to submit their reports).

As we previously reported, SB 1162 amended and expanded the requirement that certain private employers must submit pay data to the CRD (codified at Government Code section 12999). You can access our full alert regarding the new law here. Among other things, the new law revised the requirement for employers with 100 or more employees submit a Payroll Employee Report and created a new requirement that employers with 100 or more employees hired through labor contractors (i.e., staffing agencies) must submit a separate Pay Data Report concerning those Labor Contractor Employees to the CRD. Both types of report are currently due on May 10, 2023. The CRD has authority to enforce the deadline by seeking injunctive relief and monetary penalties against any employer who does not submit a timely report.

However, the CRD will now accept requests for a deferral of date on which they will begin enforcing the requirement that employers submit Labor Contractor Employee Reports ONLY. If a request is granted, the CRD will not start an enforcement action against an employer before the deferral date, which could be up to July 10, 2023. Although the CRD cannot technically extend the deadline for filing the reports (which is included in the statute), this deferral effectively gives employers an additional period (up to two months) to get their Labor Contractor Employee Reports on file.

To seek a deferral, employers must register in the Pay Data Reporting portal and submit a request form by May 10, 2023.

Enforcement deferral periods are not available for pay data reports covering an employer’s payroll employees (Payroll Employee Reports).

For more information on the deferral and the pay data reporting requirements, please visit the CRD’s website: https://calcivilrights.ca.gov/paydatareporting/.

If you have questions about Pay Data Reporting or advice about how to implement these new requirements, please contact us.

• Katie M. McCray (kmccray@wilsonturnerkosmo.com)
• Emily J. Fox (efox@wilsonturnerkosmo.com)
• Lois M. Kosch (lkosch@wilsonturnerkosmo.com)

Wilson Turner Kosmo’s Special Alerts are intended to update our valued clients on significant employment law developments as they occur. This should not be considered legal advice.