In 2023, the coverage was expanded to include employers with one or more employees, excluding sole proprietorships, self-employed individuals, or other business entities that do not employ any individuals other than the owners of the business.

Employers that already offer a qualified retirement savings program do not have to allow employees to participate in the CalSavers program. Employers retain the right at all times to set up and offer their own qualified retirement plan.

The law created tiered registration deadlines based on employer size. For example, eligible employers with more than 50 eligible employees, and who did not offer a retirement savings pro-gram, were required to be registered in 2021. Smaller eligible employers, those with five or more employees that do not offer a retirement savings program, were required to be registered by June 30, 2022.

Under the 2023 expansion to the program, eligible employers with one or more eligible employees that do not offer a retirement savings program are required to be registered by December 31, 2025.2

Employers will have some administrative duties, including:

• Allowing employees to make automatic contributions from their paychecks;
• Marking employees as inactive when they leave or are terminated; and
• Transmitting payroll contributions.

Note for Exempt Employers: Although not required, CalSavers requests that employers that already offer a qualified retirement program, and are exempt from participating in the program, inform CalSavers of their exemption in the employer portal.

The legislation also provides employers with specified immunity from civil liability.3

Employers can find more information about the program on the CalSavers website.

1. Gov’t. Code sec. 100000