By Jennifer Jacobus, PHRca, SHRM-CP SDEA Director of HR Services.
Last year Governor Newsom signed SB 973 into law. SB 973 will require employers with 100 or more employees to report pay data to the Department of Fair Employment and Housing (DFEH). This report is due no later than March 31, 2021 and will be due on an annual basis going forward.
Under the bill, the pay data report must include a breakdown of employees by race, ethnicity, and sex in 10 job categories defined by the DFEH. The report must also include a breakdown of employee compensation in pay bands used by the United States Bureau of Labor Statistics. Pay bands will range from a low of “less than $19,239” to a high of “more than $208,000” again by race, ethnicity, and sex. Employers will use W-2 income for this reporting. Employers will also be required to report total hours worked by each employee within a given pay band during the reporting year.
Employers with 100 or more employees are encouraged to not hesitate in exploring the new reports and visiting California’s Department of Fair Employment and Housing Data Reporting page for more information. This link will lead you to the Pay Reporting Portal, a User Guide, an Excel Template, a CVS Example, a means to request deferral and FAQs.
If you have any questions or need further clarification, please reach out to SDEA at 858-505-0024.