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Reminder: Certain California Employers Without 401(k) Plans Must Register For CalSavers Retirement Program
Jul 7, 2022

Reminder: Certain California Employers Without 401(k) Plans Must Register For CalSavers Retirement Program

Topics: Employee Benefits, Legal Information

As of June 30, 2022, employers with at least five California employees must register for the CalSavers Retirement Program if they do not otherwise offer a 401(k) plan to their employees. The CalSavers Retirement Savings Trust Act was passed in 2016 to provide California employees without access to an employer-sponsored 401(k) plan with a retirement program. CalSavers assists with the automatic enrollment of an individual retirement account (IRA) administered by the state of California. 

The Act applies to any employer (person or entity), other than the federal or state government, engaged in any business or profession in the state of California, employing at least five California employees. The deadline for registering under the CalSavers Retirement Program varies based on the number of employees. The deadlines for employers without 401(k) plans to register for the CalSavers Retirement Program were:

  • Employers with more than 100 California employees – September 30, 2020
  • Employers with 51 to 100 California employees – June 30, 2021
  • Employers with 5 to 50 California employees – June 30, 2022

Failure to register if required to do so subjects the employer to penalties, which can include $250 per employee for the initial violation and $750 per employee if not remedied. Thus, employers required to register for the CalSavers Retirement Program that have not yet registered should register immediately. For more information visit https://www.calsavers.com or contact your favorite CDF attorney for assistance.

About CDF

For over 25 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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About the Editor in Chief

Sacramento Office Managing Partner and Chair of CDF’s Traditional Labor Law Practice Group. Mark has been practicing labor and employment law in California for thirty years. His practice has a special emphasis on the representation of California employers in union-management relations and handling federal and state court litigation and administrative matters triggered by all types of employment-related disputes. He is also adept at providing creative and practical legal advice to help minimize the risks inherent in employing workers in California. He recently named “Sacramento Lawyer of the Year” in Employment Law-Management for 2021 by Best Lawyers®.
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