California Employers Can Request Deferral for Labor Contractor Report

By: Sheryl Harmening

On April 14, 2023, California’s Civil Rights Department (CRD) updated its Frequently Asked Questions (FAQs) with additional information on upcoming pay reporting requirements. According to CRD, employers can now request an “enforcement deferral” for their Labor Contractor Reports. 

The State of California requires private employers with 100 or more employees, with at least one employee in California, to file a Payroll Employee Report covering pay and demographics data for employees on their payroll. Additionally, last September, the State of California signed into law Senate Bill-1162, which added additional provisions to the existing pay reporting requirements. Employers are now required to submit similar data for workers hired through “labor contractors,” which is defined as “an individual or entity that supplies…a client employer with workers to perform labor within the client employer’s usual course of business.” 

The Payroll Employee Report and the Labor Contractor Report are both due May 10, 2023.  

The April 14, 2023, update to the FAQs state that employers can now submit an enforcement deferral request for their Labor Contractor Report. The deferral is NOT an extension. According to CRD, if an employer’s request for deferral is approved, CRD will “defer to seek an order of compliance” for the Labor Contractor Report if the report is filed after the May 10, 2023, deadline.   

CRD will begin accepting requests for deferral on April 18, 2023. Employers seeking enforcement deferrals must register in the California Pay Data Reporting Portal and submit a request form by May 10, 2023. The request must come from the employer and must be submitted through the portal. CRD states that email and phone requests will not be considered. If the request is accepted, CRD will defer seeking an order of compliance through Monday, July 10, 2023. 

Employers should note this deferral request process is for the Labor Contractor Report only. The Payroll Employee report is still due on May 10, 2023. 

Failure to file the report by the deadline can result in civil penalties and CRD can seek a court order requiring employers to comply with the pay reporting requirements. 

DCI will continue to monitor developments regarding the California Pay Data Report. 

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