California law requires employers with 100 or more payroll or labor contractor employees to annually submit data on the pay, hours worked, and demographics of their employees to the California Civil Rights Department (CRD).  The California Pay Data Report is due May 8, 2024.  If we normally file this report, we will file your data ahead of the deadline.

Starting last year, private employers with 100 or more labor contractor employees (employees from staffing agencies) with at least one worker based in California, must file a separate report.  Below are some concerns with this reporting.

  • Data Availability – Many companies do not have access to payroll information from staffing agencies.  We recommend documenting if you request this information from the staffing agency and they do not provide it.  The bill states labor contractors are responsible for providing the necessary pay data to employers and they can be penalized for not complying.
  • Reporting on Employees Not on Company’s Payroll – Labor contractor employees perform work for the Company, but are paid by someone else.  There may be confidentiality issues with reporting on employees who are not on the Company’s payroll.
  • Labor Contractor Definition – The reporting excludes contract employees who do work that is not part of the usual course of business (which they define in the FAQs) and appears to exclude independent contractors, who work for themselves, not a staffing agency.

As a reminder, below are additional requirements as part of this law:

  • Employers with 15 or more employees are required to include the pay scale in each job posting. “Pay scale” is defined as the salary or hourly wage range that the employer reasonably expects to pay for the position.  If an employee asks, employers are required to provide the pay scale for the employee’s current position.
  • Employers are required to maintain records of job title and wage rate history for each employee during their employment and three years after their employment has ended. Employers cannot ask about or use an applicant’s salary history as a factor in hiring or compensation decisions.  Employees may file a written complaint with the Labor Commissioner within one year of learning about a violation.