Friday, March 10th, 2023

Highlights

isolved version 9.04 includes information about enhanced pay data reporting to support California’s pay transparency law.

HR

• California’s new pay transparency law and changes to pay data reporting

HR

California’s new pay transparency law

Updates to California Pay Data Report to support compliance

Senate Bill (SB) 1162, signed in September 2022 by Governor Gavin Newsom, expanded pay data reporting processes and requirements for California employers.  Beginning in 2023, SB1162 requires employers to report new demographic and pay data and imposes new reporting obligations regarding contractor workers:

o   Provide direct comparison of pay rates between different race/ethnicity and gender groups

Employers with one hundred or more employees are required to submit annual pay data reports to the California Civil Rights Department (CRD).  The reports must provide “within each job category, for each combination of race, ethnicity, and sex, the median and mean hourly rate.”

o   EEO-1 reports can no longer be used to satisfy the California pay day reporting requirement

Employers are now required to submit their reports to the CRD regardless of whether they file federal Employer Information (EEO-1) reports.  EEO-1 reports can no longer be used to satisfy the California pay data reporting requirement.

o   Some private employers are required to submit a separate pay data report to cover contractor employees

Private employers that had one hundred or more employees employed through labor contractors during the prior calendar year are required to submit a separate pay data report covering the contractor employees. Employees must also disclose in the pay data report the names of all labor contractors used to supply employees.

This release enhances the existing CA Pay Data Report to ensure it remains compliant with the pay transparency law.  You can navigate to Reporting > Client Reports and select the Report Category “HR – Compliance” to easily access the CA Pay Data Report. The following updates were made:

• Include employees with a work location in the state of California based on the end date of the snapshot period selected for the report OR employees designated as remote employees that have a California resident address based on the end date of the snapshot period.
• Remove the Establishment ID column
• Add a mean and median column to the report.  “Mean-Hourly Rate” comes after the “# of Employees” (column 21, after the Establishment ID column is removed).  “Median-Rate” (column 22) will come after the Mean-Hourly Rate column.

For more information about the changes in the version 9.04 release, contact your Payroll Specialist.