Employment Law Bulletin | May 13, 2021

CalSavers Registration Deadline Coming Soon for Employers with 50 or More Employees

CalSavers is a state-run Roth IRA program for California-based, private-sector workers whose employers do not provide a retirement savings plan.  Employers of five or more California-based employees that do not offer employees their own qualified retirement plan, must register with CalSavers and facilitate their employees’ access to the state-run retirement savings program.  The program began in July 2019, but the deadline for employers to register with CalSavers varies according to the size of the employer:

CalSavers does not apply to employers who already offer an employer-sponsored qualified retirement plan.  Qualified retirement plans include:

Employers do not contribute financially to the CalSavers plan, but must facilitate their employees’ access to the Program.  Employers must:

Employers who fail to comply will receive a notice of noncompliance.  If noncompliance extends 90 days or more after the notice, employers are subject to a penalty of $250 per eligible employee.  An additional penalty of $500 per eligible employee may be imposed if the employer is found to be in noncompliance 180 days or more after the notice.

More information about CalSavers, including frequently asked questions about the Program, can be found at www.calsavers.com [2].

Please reach out to an SMT employment attorney if you have questions about CalSavers or we can assist you with any employment issue.

Lisa Ann Hilario [3]

No Se Habla Español?

SMT’s employment attorneys can provide your company with employment policies, forms and employee disciplinary documentation in Spanish. Providing such important information to employees in the language they understand is critical to employee performance, providing a welcoming diverse work environment, and protecting your company against employment claims. Contact an SMT attorney today to get started.

Spaulding McCullough & Tansil LLP
Employment Law Group

Jan Gabrielson Tansil [4]  | Lisa Ann Hilario [3] | Kari Brown [5]