For the first time this year, California is requiring employers to report not only their employees’ pay data but also pay data for individuals hired through labor contractors (i.e., staffing agencies).  On an annual basis, these reports will be due the second Wednesday in May for the prior year.

Please note, California is cutting employers some slack when it comes to the labor contractor report this year because it is a new requirement.  The California Civil Rights Department (CRD), formerly the Department of Fair Employment and Housing (DFEH), just announced that it will be extending the deadline to submit the labor contractor reports to July 10, 2023.

How to Take Advantage of the Labor Contractor Report Extension

This extension is not automatic.  Rather, companies must register on the CRD’s pay data reporting portal and request an “enforcement deferral request.”  We suggest that companies request this deferral immediately and in advance of the existing May 10, 2023 deadline to provide the CRD as much time as possible to approve the request.

Do I Even Have to Submit a Labor Contractor Report?

Companies with 100 or more individuals worldwide, placed through a labor contractor, must comply with the pay data reporting requirements as long as one of these workers is based in California.  This can be a huge task if a company sources its workers from multiple labor contractors because it will require coordination with the staffing providers to collect the required data.

Even if companies are able to secure an extension, they should begin working immediately with their staffing providers to gather the data needed.  Likewise, if your company is a labor contractor, be prepared to receive requests for the legally required data from your clients, or reach out to them proactively to coordinate the data transfer.

Can I Get an Extension for the Employee Report?

No. The deadline to submit the employee pay data report for employers with 100 or more employees worldwide (with at least one based in California) remains May 10, 2023.

Keep in mind that the pay data report includes individuals who physically work in California, as well as those who work outside California but are assigned to an establishment in California (e.g., a remote employee in Colorado who is assigned to an establishment located in Los Angeles).

Medina McKelvey Is Here to Help

Whether your company must comply with the May 10 employee pay reporting deadline or has a little more breathing room to submit the labor contractor report in July, Medina McKelvey can help navigate this annual obligation.  Please reply to this email or call (916) 960-2211 to schedule a time to discuss your legal HR requirements.