Employers of California Workers Face May 8 Deadline to Submit 2023 Pay Data to State

California law requires all private employers with 100 or more employees and/or 100 or more workers hired through labor contractors to submit annual information to the state on worker pay and demographics. Companies must comply with this state law even if they have one employee in California and the rest live in another state, so long as they have 100 or more employees and/or contracted workers. The deadline for submitting the required pay information to the state is May 8, 2024.

Furthermore, employers are subject to a new submission requirement for 2024. Employers now must submit information on remote workers, including:

  • The number of workers who don’t work remotely;
  • The number of remote workers in California; and
  • The number of remote workers outside of California assigned to a California site.

The other new rule is that employers no longer can categorize the race/ethnicity of labor contractor employees as “unknown.”

Failure to comply with state law requirements can lead to $100 civil penalty per employee and $200 civil penalty per employee per subsequent failure to comply. Penalties also apply to labor contractors who fail to provide the required information to employers.

As a result, to ensure compliance with the law, companies should first determine whether they are subject to the California state law reporting requirements. If so, they should request any required data from labor contractors as needed. Finally, they should prepare a plan to submit the required data to the state before the May 8, 2024, deadline.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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