Proposed Changes to EEO-1 Report
As we reported previously, the Equal Employment Opportunity Commission (EEOC) has spent the last 18 months devising ways to enforce pay equity through a series of reporting, enforcement and voluntary initiatives. Proposed reporting initiatives followed an effort by the Office of Federal Contract Compliance Programs (OFCCP) to obtain pay data in an equal pay report. Ultimately, the EEOC joined with OFCCP to collect and share pay data to strengthen its reporting and enforcement efforts.
As far back as January 29, 2016, the EEOC asked the Office of Management and Budget to approve a change to the EEO-1 report. The EEOC finalized the rule related to pay data collection in September 2016, and proposed that beginning in September 2017, EEO-1 filers with 100 or more employees (and federal contractors with 50 or more employees) would be required to submit EEO-1 data to include aggregated W-2 pay and hours worked data.
The EEOC planned to use pay data in early investigations of compensation discrimination. Investigators were to examine the data for pay disparities, perform statistical analyses, and compare periodic reports on pay disparities by gender and race based on the data.
OMB Blocks Revised EEO-1 Report
On August 29, the Office of Management and Budget (OMB) sent a memorandum to the EEOC, announcing that it was implementing an immediate stay of the revised EEO-1 Report. In issuing the stay, the OMB halted long-awaited pay data reporting requirements and declared concerns with the revised reporting requirements. Per the memo, “Among other things, OMB is concerned that some aspects of the revised collection of information lack practical utility, are unnecessarily burdensome, and do not adequately address privacy and confidentiality issues.” The stay creates much needed relief for employers, but is expected to further refocus pay equity discussions on a statewide and local level.
With this decision by the OMB, for now, approximately 60,000 employers may limit the information provided on the EEO-1 Form to data on race, ethnicity and gender by occupational category.
EEOC Acting Chair, Victoria A. Lipnic released a statement about OMB’s decision.
To discuss the stay of EEOC’s latest EEO-1 report proposal, or any of California’s employment related laws, feel free to contact leading California employment lawyers at Kingsley & Kingsley. Call toll-free at (888) 500-8469 or click here to contact us via email.
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