California Provides Additional Guidance On Employee Pay Data Reporting

On November 23, 2020, the California Department of Fair Employment and Housing issued additional guidance for employers regarding their requirement to file employee compensation data with the state beginning in March of next year. Pursuant to recently enacted SB 973, California employers will be required to file detailed information about their workforce's compensation broken down by race, gender, ethnicity, and job title. The new guidance takes the form of additional Frequently Asked Questions (FAQs). The state issued limited FAQs earlier in November, and additional guidance is expected.

Key takeaways from the new FAQs include:

Employers with 100 or more employees will be required to file an annual report covering the prior calendar year, based on a "snapshot period" of a single pay period between October 1 and December 31 of the prior year. An employer can use the pay period of its choosing as the "snapshot."