As California’s April 1, 2022 pay data reporting deadline approaches, we are dealing with many questions about when remote employees, teleworking employees, and traveling employees must be included in the report. A private employer (any employer that is not a government employer) is required to file a pay data report to the Department of Fair Employment and Housing (DFEH) if the employer has 100 or more employees during the Snapshot Period chosen by the employer or who regularly employed 100 or more employees during the Reporting Year. Employees located inside and outside of California are counted when determining whether an employer has 100 or more employees. When reporting to the DFEH, employers must include their employees assigned to California establishments and/or working within California, including employees who work remotely or telework. An employer with no employees in California during the Reporting Year would not be required to file a pay data report with the DFEH. Below are various scenarios that arise with remote or teleworking employees and whether these employees must be included in the employer’s pay data report:
1. Remote Employees Assigned to a California Establishment
Employers must report on their employees assigned to a California establishment, whether or not teleworking. This means that employees working remotely from a residence outside of California, or at a client’s site outside of California but assigned to a California establishment must be included in the reporting to the DFEH.
- For example, if an employer has a single establishment in Riverside, California with 500 employees working from that location, the employer would submit a report covering all 500 employees. If 25 of the 500 employees were working remotely (in California or beyond), the employer’s report would still cover all 500 employees.
- Likewise, a multi-establishment employer with establishments only in California will include all employees (including any employees outside of California) whether or not teleworking. For example, if an employer has 5,000 employees working across 10 establishments in California, the employer’s report would cover all 5,000 employees, reported by establishment. If 100 of the 5000 employees were working remotely (in California or beyond), the employer’s report would still cover all 5,000 employees, and the 100 remote employees would be assigned by the employer to their associated establishment.
2. Employees Assigned to a Non-California Establishment Working Within California
Employer must include establishments outside of California if any employee at the non-California establishment is working from California during the Snapshot Period. Hence, any employee that works within California even if the employee is not assigned to a California establishment must be reported on.
- For an establishment outside of California, the employer’s reporting would cover either only those employees teleworking from California and who are assigned to a single establishment outside of California or all employees assigned to that establishment outside of California.
3. Employers are not required to report on any employee who lives in California but physically works at an establishment outside of California.
However, if the employee teleworks from California, the employee would be included in the report.
4. Employees Who Are Entirely Remote
For employees who are entirely remote, the employer must first determine which establishment(s) the employees are assigned to. If the employees are not assigned to any establishment, the employer would report the employees at the employer’s headquarters.
- If assigned to a California headquarters or establishment, the employees must be reported on regardless of whether the employees are working remotely in California or beyond.
- Non-California headquarters or establishment, the employees must be reported on only if they are working remotely from a residence in California or physically at a worksite in California.
5. Employees Located All Over the United States
An employer that has employees who are located all over the United States would report on any employee during the Snapshot Period that performed work in California and/or was assigned to a California establishment or headquarters, whether or not teleworking from California or beyond or physically working at a site outside of California.
For more information see sections III.D and E of the DEFH’s FAQs found here: https://www.dfeh.ca.gov/paydatareporting/faqs/