California Requires Annual Workforce Pay and Hour Reports

California Requires Annual Workforce Pay and Hour Reports

Legal Update HeaderUnder a new law enacted on Sept. 30, 2020, certain California employers must file an annual workforce pay data report with the state by March 31 every year.

The law applies to employers that have 100 or more employees and are required to file the federal Employer Information Report (EEO-1) with the U.S. Equal Employment Opportunity Commission (EEOC). The deadline for an employer’s initial report is March 31, 2021.

Required Information

The new report requires the same information that was collected in the “EEO- 1 Component 2” before that portion of the EEO-1 was rescinded in 2019. This information includes:

  • The number of employees by race, ethnicity and sex in specified job categories during a single pay period between October 1 and December 31 of the reporting year;
  • For the employees counted, the number of employees by race, ethnicity and sex whose annual earnings fell within certain pay bands; and
  • The total number of hours worked during the reporting year by each of the employees who were counted in each pay band.

Submission and Enforcement

Employers must file the reports with the California Department of Fair Employment and Housing (DFEH), which must use the reported information to help identify violations of the state’s existing fair employment laws.

If an employer fails to file an annual report as required, the DFEH may seek a court order requiring the employer to comply and to pay all costs associated with obtaining the order.

California employers with 100 or more employees must file annual reports that are similar to the rescinded “Component 2” of the federal EEO-1.


New Reporting Mandate

California has enacted a new law that requires employers to file annual reports on their employees’ pay and work hours by race, ethnicity and sex.

Annual March 31 Deadline

Employers subject to the new law must file reports by March 31 every year. Initial reports are due by March 31, 2021.

Equal Pay Purpose

The new law aims to strengthen the state’s existing equal pay laws.

This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. ©2020 Zywave, Inc. All rights reserved.


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