Human Capital Management, Leadership

EEO-1 Pay Data Collection Requirement Reinstated

/ March 12, 2019 March 12, 2019

In September 2016, the Equal Employment Opportunity Commission (“EEOC”) expanded its collection efforts to include summary W-2 pay data and total hours worked by race, ethnicity, and gender from employers that already file the EEO-1 report (e.g., private employers with over 100 employees and federal contractors with more than 50 employees). This initiative was intended to help close the pay gap by using the data to identify discriminatory pay practices. The EEOC’s initiative, however, never went into effect. In August 2017, the Office of Management and Budget (“OMB”) temporarily stayed the pay data collection due to concerns that the reporting requirements would be too burdensome for employers.

Last week, the U.S. District Court for Washington D.C. reinstated the EEO-1 pay data collection requirements. This means that the controversial pay data collection requirements have been reinstituted, effective immediately. However, it is important to note that the current EEO-1 Report, which must be filed by May 31, 2019, does not require the collection of pay data.

At this time, there are a number of questions that remain unanswered. For example, will the EEOC require employers to submit pay data for 2018? Will the EEOC extend the deadline to file Form EEO-1 with pay data beyond the current submission deadline of May 31, 2019?

In the meantime, employers should consider reviewing their pay practices, HRIS, and payroll systems to ensure that they can comply with the new EEO-1 reporting requirements when they go into effect. Employers should also consider conducting self-audits to determine if any impermissible pay discrepancies exist.

Please note the decision may be read here by clicking here: National Women’s Law Center v. Office of Management and Budget, D.D.C., No. 17-cv-2458 (March 4, 2019).

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