CA DFEH Releases New FAQs on SB 973 Pay Data Requirements
Promises made and promises kept…
As California employers panicked over the many unanswered fine points of SB 973, requiring large (100 or more employees), private, California employers to submit annual pay data reports to the DFEH beginning in March of next year, we were reassured that all our questions would be answered. At least partially true to its word, the DFEH has issued FAQs to answer many of the common questions about compliance with the new law.
The most recent additions to the FAQs were made last week, and we are still waiting for further details on several key elements, including pay, hours worked, multi-establishment employers, acquisitions and mergers and spinoffs. Stay tuned!
What is particularly revealing in the updated FAQs is detail on the counting of employees relative to the 100-employee threshold. We now know that:
Employers must count employees located both inside and outside of California when making the 100-employee determination.
Employers with fewer than 100 employees during their chosen snapshot period could still possibly be required to file the report if they “regularly employed 100 or more employees during the Reporting Year.”
Part-time employees count the same as full-time employees towards the 100-employee threshold and so do employees who are on paid or unpaid leave, disciplinary suspension, or any other employer-approved leave of absence.
Specific requirements exist as to which employees must actually be included in the report We now know this will include employees assigned to California establishments and/or working within California, and possibly employees teleworking outside CA but assigned to an establishment in California, should be included on the report. For employees assigned to and working for an establishment outside of CA, the company can include or exclude them.
Many other details are included in the FAQs which can be found here: Pay Data Reporting | DFEH (ca.gov). And, of course, more to come!