What We Know About California Pay Data Reporting

California Pay Data Reporting 3/22/2022 Update: The DFEH in California has released the 2020 results...



Posted by Cindy Karrow, SPHR, SHRM-SCP, Managing Consultant on January 20 2021
Cindy Karrow, SPHR, SHRM-SCP, Managing Consultant
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California Pay Data Reporting

3/22/2022 Update:

The DFEH in California has released the 2020 results of pay data reports from large employers on their website located here: https://www.dfeh.ca.gov/paydatareporting/results/.

The 2020 findings reflect data on 6.3 million reported workers from approximately 14,000 California establishments. This data is available by industry. This is an evolving story, please check back here for updates.

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2/1/2022 Update:

California’s Department of Fair Employment and Housing (DFEH) is off and running for the 2021 filing season. Their CA Pay Data Report website has been updated and is ready to go. Reminder: Reports are due by April 1, 2022.  

There is a Revised User Guide, updated FAQs and the Portal Login has been updated.

CA Pay Data Report website - updated items

A new Look for the portal login page:

Welcome to the California Pay Data Reporting Portal

Another change - noted in the above welcome statement. After Certification of the report the employer can access a .csv copy of their certified reports.

Next screen – another new look:

Welcome, <first name last name> what would you like to do today?

CA Pay Data Reporting website - next screen

To download a copy of a previous year’s report, choose Certified Submissions. The next screen will show Submission ID, Company Name, and other information. Two .csv files export for each year filed.

  • Company Information
  • Establishment Information

Another important change:

Certification/Decertification – After certification the filer can access the filed report. If an error is found in the 2021 report, there is an option to Decertify and Edit within a period of days. This information appears on the screen titled Certification Complete.

Follow this blog for more information and tips as we dig into California Pay Data reporting.

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1/31/2022 Update:

California’s DFEH continues to update its website, reporting portal and reference documents - some of which will be available on February 2, 2022.  

New Frequently Asked Questions (FAQ) for the 2021 filing cycle are visible on the website.

The filing portal will not be available on Monday January 31, 2022, while the agency adjusts for the 2021 filing season.

Reports for 2021 may be filed beginning February 1, 2022. The due date is April 1, 2022, since March 31, 2022, is a California state holiday.

Earlier this week DFEH sent emails to contact persons using information from the 2020 filing. As previously mentioned, companies who filed before July 1, 2021, must complete a new registration for the contact person(s) and then those users must associate or match to the employer. The email provides instructions on the process.   We recommend that those registering as contact persons have the following information available:

  • Submission ID used to file the 2020 report prior to July 1, 2021 – this is also visible in the email
  • Parent Company Federal Tax ID (FEIN) – used to file the 2020 report
  • Parent Company California Tax ID (SEIN) – used to file the 2020 report. If this number was unknown, the filing allowed eight zeros (00000000)

Watch this space for more updates after February 2, 2022.

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1/25/2022 Update:

California’s Department of Fair Employment and Housing (DFEH) reached out to filers January 24th with updates for the 2021 filing season. Most notable is the change in Pay Band amounts. Below is a chart with the 2020 Pay Band ranges and the new ranges to be used for 2021. The source of these Pay Band ranges is the U.S. Bureau of Labor Statistics.

U.S. Bureau of Labor Statistics Pay Band ranges

Other significant changes are:

  • New Registration process for companies who filed before July 1, 2021.
  • New online interface – Company information will be provided through a series of questions. Establishment/employment data can still be uploaded.
  • Due date for 2021 report is April 1, 2022.
  • New/revised reference materials and FAQ

Berkshire is learning more about the new site and processes. We will publish more information as we learn more.

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Update (1/18/2022):

California’s Department of Fair Employment and Housing (DFEH) announced the beginning of the 2021 filing season on their website. https://www.dfeh.ca.gov/paydatareporting/

This report is required under California Senate Bill 973. Private employers with 100 or more employees (with at least one employee in California) must report certain pay and other data to DFEH annually.

The Pay Data reports for 2021 are due by April 1, 2022. The portal site has been updated and resources will be available on February 1, 2022. Additionally, the portal will be unavailable on January 31, 2022.

The Pay Data report is like the EEO-1 Component 2 report which was required by EEOC in 2017 and 2018 and then discontinued by EEOC. Aggregated employee demographic, pay band and hours information is supplied for each establishment to be reported for the Pay Data report. Filers can manually enter or upload an Excel or .csv file through the portal.  

Berkshire will continue to post updates and notices about the Pay Data Reporting cycle and the resources available in this continuing blog.   Stay tuned.

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California Department of Fair Employment and Housing (DFEH) will once again require some employers to file the annual California Pay Report. Senate Bill 973 (SB 973) was enacted in September 2020 to collect compensation and hours paid information for certain employers.

The annual report for 2021 is due by March 31, 2022. However, the DFEH website is not open yet for data collection for the 2021 filing season. DFEH made some enhancements in July 2021 to the reporting portal and user guide. Portal user information can be found on the DFEH website using this link.

The California Pay Data Reporting law affects employers in different ways, depending on their number of employees who live in, work in, or report to establishments located in California.

Below is a summary of information that employers need to know to begin preparing to file the 2021 CA Pay Data Report.

Who must file?

  • All employers who have 100 or more employees inside and outside of California, and,
  • Who are required to file the EEO-1 report, and,
  • Who have at least one employee assigned to work at an establishment in California, or,
  • Who have at least one employee who lives in California (including remote workers)

What is the filing deadline for the next annual report? The deadline is March 31, 2022. The opening date for the Data Submission Portal for 2021 has not been announced.

Will individual employee data be reported? No, companies will tabulate or aggregate the required information. If a company has multiple establishments to be reported, each will be reported individually. Multi establishment employers are not required to include a company consolidated report with their filing.

What date or dates should be used to pull employee data for the report? Companies may pick a single pay period between October 1 and December 31 of the year to be filed. For example, the data for the report to be filed by March 31, 2022 should be pulled from a pay period between October 1, 2021 and December 31, 2021.

What data should be pulled to create the report? Berkshire suggests the following data elements for each employee included in the report to assist the company in compiling the establishment reports:

Employee information:

  • Employee identifier
  • Race/Ethnicity
  • Sex (including male, female and non-binary)
  • EEO-1 Category of the job held by the employee
  • Work Location
  • EEO-1 Unit/Establishment Number (assigned by the EEOC if available)
  • Report Location – if different from work location
  • W2 Box 5 earnings for 2021 – used to assign each employee to a Pay Band
  • Hours worked in 2021
  • Paid time off hours in 2021 (Hours worked and paid time off hours will be consolidated)

Establishment information – for each establishment to be reported:

  • Establishment Name
  • EEO-1 Unit/Establishment Number (assigned by the EEOC if available)
  • Address, City, State, Zip Code
  • North American Industrial Classification System (NAICS) code – designates major activity

Company Information:

  • Company Name
  • Address, City, State, Zip Code
  • Headquarters address if different from Company address
  • North American Industrial Classification System (NAICS) code
  • Federal Employer Identification Number/Tax Identification Number (FEIN/EIN)
  • Dun and Bradstreet Number (DUNS) is requested but not required
  • Is company a contractor with the state of California?
  • If applicable – Name and Address of the employer’s Parent Company/Companies

What employee types should be included in the report? Full-time and part-time employees are to be included. This includes employees on paid or unpaid leave. The FAQ explains further:

Government Code section 12999(m)(1) defines “employee” (for purposes of pay data reporting) to mean “an individual on an employer’s payroll, including a part-time individual, whom the employer is required to include in an EEO-1 Report and for whom the employer is required to withhold federal social security taxes from that individual’s wages.” If any temporary worker provided by a staffing agency or any independent contractor meets this definition of “employee,” then that individual is counted.”

If an employee is included in the data pulled for the pay period but terminates before the year end, must their data be included in the report? Yes, if they were employed during the selected pay period.

What will the format for the reports look like?  The most recent file templates can be found on the DFEH website at this link. There are examples in both .csv or Excel format. Once the data submission portal is open for the 2021 filing season the required file may be submitted in either format.

The portal also offers fillable screens for companies who prefer to enter the data directly into the system instead of submitting an electronic file.

What are the pay bands used by California Pay Data Reporting? The pay bands may be the same as used for the 2020 report. They originated from the U.S. Bureau of Labor Statistics and they were:

  1. $19,239 and under
  2. $19,240 – $24,439
  3. $24,440 – $30,679
  4. $30,680 – $38,999
  5. $39,000 – $49,919
  6. $49,920 – $62,919
  7. $62,920 – $80,079
  8. $80,080 – $101,919
  9. $101,920 – $128,959
  10. $128,960 – $163,799
  11. $163,800 – $207,999
  12. $208,000 and over

What race/ethnic categories are to be reported? Use the same categories identified in the EEO-1 Instruction Booklet.

  • Hispanic or Latino- A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin regardless of race.
  • White (Not Hispanic or Latino)- A person having origins in any of the original peoples of Europe, the Middle East, or North Africa.
  • Black or African American (Not Hispanic or Latino)- A person having origins in any of the black racial groups of Africa.
  • Native Hawaiian or Pacific Islander (Not Hispanic or Latino)- A person having origins in any of the peoples of Hawaii, Guam, Samoa, or other Pacific Islands.
  • Asian (Not Hispanic or Latino)- A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian Subcontinent, including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam.
  • Native American or Alaska Native (Not Hispanic or Latino)- A person having origins in any of the original peoples of North and South America (including Central America), and who maintain tribal affiliation or community attachment.
  • Two or More Races (Not Hispanic or Latino) -All persons who identify with more than one of the above five races.

What gender/sex categories are to be reported? California officially recognizes three genders: female, male, and nonbinary.

 How should the hours worked and hours of paid time off be calculated?

  • For non-exempt employees use timesheets or other records to calculate hours actually worked in 2021 and hours paid time off (vacation, sick, or holiday time) in 2021.
  • For exempt employees use timesheets or other records to calculate hours actually worked in 2021 and hours paid time off (vacation, sick, or holiday time) in 2021, if such records are maintained
  • If there are no such records for exempt employees, use a proxy:
    • Add the number days actually worked plus the number of days of paid time off (vacation, sick, or holiday time) for each exempt employee during the reporting year.
    • Multiply by the average number of hours worked per day by the exempt employee

Will companies be required to include employee counts for employees who do not live or work in California? Possibly. The FAQs state that if an employee works outside of California but is assigned to a California establishment, their counts must be included in the report. DFEH provides employers with the option to include all employees in the reports.

If our organization files EEO-3, EEO-4 or EEO-5 report but not EEO-1, must we file the CA Pay Report? No

 

Where can I find more information? The DFEH website address is: https://www.dfeh.ca.gov/paydatareporting

If you have specific questions, please contact your consultant or email us.

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11/5/2021 Update:

In the famous words of Yogi Berra "It ain't over till it's over." California’s Department of Fair Housing and Employment has mailed letters to some employers citing a Notice of Potential Non-Compliance for failure to file the 2020 CA Pay Data Report. You will recall that this report was due March 31, 2021, unless a 30-day deferral was granted.

The letters, dated at the end of October 2021, give 30 days to file or clear up the matter via the DFEH website or face a court order and related expenses. DFEH will soon begin the new reporting period for the 2021 CA Pay Data report, therefore, it is likely they want to close out 2020. Remember this is an annual report. The 2021 report is due no later than March 31, 2022.

Of concern to some employers is that the letters were sent via U.S. Mail and not necessarily to the company’s headquarters. We urge you to inform appropriate individuals that any letter from DFEH be quickly routed to the appropriate person for review and response.

The CA Pay Data Reporting website has a link that is used to respond to the letter.

Reply to Pay Data Notice and Submit Pay Data Related QuestionsThere are drop down menus to select the appropriate responses. It will be helpful to have the following information ready to include in the response:

• Pay Data Case Number – from the letter
• Submission ID – the ID number used to log in to the system and file
• Date report filed
• Federal Employer ID – FEIN
• California Employer ID – SEIN
• Actual copy of the report downloaded after certification – this can be attached to the response

Please contact your Berkshire consultant if you have questions or need assistance with your response.

Cindy Karrow, SPHR, SHRM-SCP, Managing Consultant
Cindy Karrow, SPHR, SHRM-SCP, Managing Consultant
As a Managing Consultant, Cindy Karrow, SPHR, SHRM-SCP specializes in developing AAPs, acting as liaison with the OFCCP, and delivering customized training.

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