The California Civil Rights Department (CRD) has announced that employers may request an extension to a new requirement to submit a separate pay data report on workers hired through labor contractors. The request must be submitted by May 10, 2023.
The Details
By way of background, California requires a private employer that has 100 or more employees to submit a pay data report for its payroll employees each year. The state refers to this as the Payroll Employee Report. The report is due on or before the second Wednesday of May each year, beginning May 10, 2023.
Beginning in 2023, a private employer that has 100 or more workers hired through labor contractors within the prior calendar year must submit a separate pay data report to the state covering those employees. The state refers to this as the Labor Contractor Employee Report. This separate report is due at the same time as the Payroll Employee Report.
However, the CRD has announced that employers may seek an extension to submit the Labor Contractor Employee Report. To seek an extension, an employer must register in the state portal and fill out and submit a request form by May 10, 2023. If granted, the extension would last through July 10, 2023. The state is referring to requests for extensions as “enforcement deferral requests.”
The employer itself must submit the request. The CRD won’t consider a request submitted by a third party on behalf of an employer, such as a Professional Employer Organization (PEO).
Note: Extensions aren’t available for the Payroll Employee Report. Those reports are still due on or before May 10, 2023.
Next Steps
If you have 100 or more employees hired through labor contractors and wish to seek an extension for filing the Labor Contractor Employee Report:
- Register in the state portal and fill out and submit a request form by May 10, 2023.
- If the extension request is granted, file the report on or before July 10, 2023.
Please contact your dedicated service professional with any questions.