Hunton Employment & Labor Perspectives

On April 14, 2023, the California Civil Rights Department (“CRD”), formerly known as the Department of Fair Employment and Housing, announced that it will now accept “enforcement deferral requests” from employers currently obligated to provide a “Labor Contractor Employee Report” by the upcoming May 10, 2023 deadline. 

This new Labor Contractor Employee Report is required for any private “employer that has 100 or more employees hired through labor contractors within the prior calendar year” if at least one worker was based in California.  Government Code section 12999 (codified by Senate Bill 1162 and effective January 1, 2023).  The report requires employer disclosure of various pay data and hours worked by their employees’ race, ethnicity, and sex.  The Labor Contractor Employee Report must also include the ownership names of all labor contractors used to supply employees.

Applicable employers that need additional time to gather all the required information before May 10, 2023, may now request an extension through the CRD’s pay data reporting online portal.  The CRD will only accept such requests through this portal.  To complete the enforcement deferral request, employers must provide the following information: the name(s) of their labor contractor(s), the number of labor contractor employees, a justification for the deferral request, and the name and contact information of the person requesting the deferral.  If the request is granted, the CRD will defer seeking an order of compliance for the employer to file its Labor Contractor Employee Report through to July 10, 2023. 

California employers should note that the CRD is only accepting enforcement deferrals on the Labor Contractor Employee Report and that such deferrals will not apply to Payroll Employee Reports, which are also due on May 10, 2023.  This is particularly important as under Government Code section 12999, the CRD is empowered to seek orders against any noncompliant employers to impose penalties of $100 per employee. For more information on the Labor Contractor Employee Report and California employers’ pay data reporting requirements, see the CRD’s Frequently Asked Questions.