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NEW CALIFORNIA REPORTING REQUIREMENTS

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EMPLOYMENT LAW UPDATE (NON-COVID-19 )
CALIFORNIA PAY DATA REPORTING DEADLINE APPROACHES
February 22, 2021

The obligation to report certain pay data through the annual EEO-1 report has been a long standing requirement for private employers with 100 or more employees. Under a new California law (SB 973), a private employer that has (1) 100 or more employees, and (2) that is required to file an annual [EEO-1 report] under federal law, must also submit a pay data report to the DFEH that contains … wage information on or before March 31, 2021 and on or before March 31st each year thereafter.”

The required information during the “Snapshot Period” (as defined) includes but may not be limited to:
  • The number of employees by race, ethnicity, and sex in each of the following ten job categories: Executive or senior level officials and managers; First or mid-level officials and managers; Professionals; Technicians; Sales workers; Administrative support workers; Craft workers; Operatives; Laborers and helpers; and Service workers.
  • The number of employees by race, ethnicity, and sex, whose annual earnings fall within each of the pay bands used by the United States Bureau of Labor Statistics in the Occupational Employment Statistics survey.
    • For purposes of establishing the numbers to be reported, the employer shall identify the total earnings during the Reporting Year, as shown on the Internal Revenue Service Form W-2 Box 5, for each employee in the Snapshot, regardless of whether the employee worked for the full calendar year.
  • The total number of hours worked by each employee during the entire Reporting Year, plus the hours the employee was on any form of paid time off for which the employee was paid by the employer (such as vacation time, sick time, or holiday time).
  • The Reporting Year and the dates of the Snapshot Period selected by the employer.
  • The employer’s name, address, headquarters’ address (if different), California and Federal Employer Identification Number, North American Industry Classification System (NAICS) code, Dun and Bradstreet number, number of employees inside and outside of California, number of establishments inside and outside of California, and whether the employer is a California state contractor. If applicable, the name and address of the employer’s parent company or parent companies.
  • For a multiple-establishment employer’s establishments, each establishment’s name, address, number of employees, and major activity.
  • Any clarifying remarks.
  • A certification that the information contained in the pay data report is accurate and prepared in accordance with Government Code section 12999 and DFEH’s instructions, and the name, title, signature, and date of signature of the certifying official.
  • The name, title, address, phone number, and email address of someone who can be contacted about the report.

For purposes of establishing the reportable numbers, covered employers must calculate the total earnings, as shown on the Form W-2, for each employee in the “snapshot,” for the entire “Reporting Year,” regardless of whether or not an employee worked for the full calendar year.

If an employer fails to provide a report, the DFEH can seek a court order requiring compliance, and recover its costs for doing so.

The portal (which is to be made available by February 16th), the user guide, and template can be accessed at https://www.dfeh.ca.gov/paydatareporting/. The user guide for the portal and DFEH’s report template (including detailed instructions and examples) was made available on February 1, 2021. Employers must use the online portal to submit their reports. DFEH will not accept reports by email or hard copy.

To assist the employer in complying with its reporting obligations, the DFEH posted FAQs which can be found here. One of the reporting requirements that may be more relevant this year than in prior years is how to report remote workers who may be working outside of California. The FAQ’s specifically address these issues.

Employers should immediately audit their compliance with the various pay equity obligations and correct any issues that exist before a pay equity dispute arises.


CALIFORNIA EXPANDS CHILD ABUSE REPORTING & TRAINING REQUIREMENTS TO HR PROFESSIONALS AND SUPERVISORS IN BUSINESSES EMPLOYING MINORS

The California Child Abuse and Neglect Reporting Law requires a “mandated reporter” to report suspected child abuse to law enforcement authorities. The obligation is triggered whenever the mandated reporter, in their professional capacity or within the scope of their employment, has knowledge of or observed a child whom the mandated reporter knows, or reasonably suspects has been the victim of child abuse or neglect.

The persons who are “mandated reporters” include individuals such as teachers, aides, coaches and administrative personnel in public and private schools, child care facilities, firefighters, physicians, along with over 40 other classifications of professions.

Effective January 1, 2021, human resources employees and supervisors working for California businesses with 5 or more employees that employ minors are now included as “mandated reporters”. A “human resource employee” is an employee(s) designated by the employer to accept any complaints of misconduct as required by the Fair Employment and Housing Act.

A supervisor under this law is someone whose duties require direct contact with and supervision of minors in the performance of the minors’ duties in the workplace of a subject business. Note that supervisors are not mandated reporters of all types of child abuse, as defined, but only of sexual abuse.

The law also requires covered businesses to provide their employees who are mandated reporters with training on identification and reporting of child abuse and neglect. This training must include training in child abuse and neglect identification and reporting. The business may meet the training requirement by completing the general online training for mandated reporters offered by the Office of Child Abuse Prevention in the State Department of Social Services. https://www.cdss.ca.gov/inforesources/ocap/mrt

Failure by a mandated reporter to report an incident of known or reasonably suspected child abuse or neglect is a misdemeanor punishable by up to 6 months of confinement in county jail, by a fine of $1,000, or by both that imprisonment and fine.


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