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APA Comments on Proposed California Pay Data Collection

BY: Mike Linehan | 07/18/22

In June, the APA Government Relations Task Force State and Local Topics Subcommittee submitted comments to the California legislature on S.B. 1162, which would increase the amount of data reported by employers. The APA raised concerns about the transition to any new or expanded reporting system and the added burden of collection, storage, and reporting of the data.

Reporting Already Required for Covered Employers

The APA pointed out that wage reporting is already required of employers. S.B. 1162 would require all private employers with 100 or more employees to submit a pay data report to the California Department of Fair Employment and Housing (DFEH).

However, California law already requires private employers with 100 or more employees that file an annual Employer Information (EEO-1) report with the U.S. Equal Employment Opportunity Commission (EEOC) to submit a pay data report to DFEH. Where S.B. 1162 substantially differs from existing law is that covered employers would no longer be considered compliant if they submit their federal EEO-1 to DFEH.

Detailed Pay Data Reporting and Unclear Definitions

S.B. 1162 would require employers to report the total number of employees by race, ethnicity, and sex whose annual earnings fall within each pay band used by the U.S. Bureau of Labor Statistics’ Occupational Employment Statistics Survey, as well as the “median and mean hourly pay rate” within each job category for each combination of race, ethnicity, and sex.

The APA also highlighted bill language that is inconsistent with existing regulations and other language that fails to account for situations payroll professionals encounter in their daily workload.

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Mike Linehan is the Assistant Manager of Government Relations for the APA.