Equal Pay Reporting Comes to California (and Why All Employers Nationwide Need to Pay Attention)
A new Pay Data Reporting law set to take effect in March of 2021, will have a ripple effect on many companies with employees in the Golden State. In a continuing effort to reduce gender and racial pay gaps and after years of a back-and-forth struggle at the federal level between the Obama and Trump Administrations over employer pay data reporting, California has adopted its own requirement with the enactment of SB 973. Effective March 31, 2021, private employers with 100 or more employees will be required to submit to the Department of Fair Employment and Housing (DFEH) an annual pay data report broken down by race, ethnicity, and sex.
The requirement generally tracks the “Component 2” EEO-1 pay data reporting that was proposed by the Obama Administration and only briefly implemented by the federal EEOC. However, there are many unanswered questions about this new law, including how it may impact employers with employees located outside of California. This is also likely to be an area of future activity under a Biden Administration, so this issue could extend well beyond the borders of California in the near future. Fisher Phillips is proud to host this timely webinar, providing employers with the very latest on the new law and applicable guidance from the DFEH. Attendees will review how employers can audit and analyze pay data to ensure compliance with this statute and state and federal equal pay laws and learn the tools needed to be prepared to comply with this new requirement come March of 2021.
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