EEOC’s New Pay Data Reporting Requirement Stayed

From ChamberChoice

The Equal Employment Opportunity Commission (EEOC) collects workforce data from all employers with 100 or more employees through an annual EEO-1 Report. The report, in its current form, collects data about gender, race, and ethnicity of employees by 10 different job groupings. In 2016, the EEOC revised the form in order to begin requiring employers to provide employee pay data.

The EEOC’s goal in gathering this additional data is to identify businesses that may have pay gaps, and then target those employers who are discriminating on the account of gender — and possibly race or ethnicity —through enforcement actions. The EEOC plans to publish reports using aggregated data and to train its investigators to identify potential indicators of discrimination warranting additional investigation.

This new information was to be provided in the 2017 form, and to give employers time to collect that data, the deadline for 2017 was extended by six months from September 30, 2017 to March 31, 2018. The “workforce snapshot period” has also changed to any payroll period of the employer’s choice between Oct. 1 and Dec. 31, 2017 (rather than, as previously, a payroll period between July 1 and Sept. 30).

Although the reporting deadline was extended to March 2018, there was indication that the new pay data reporting requirement may be further suspended or even canceled. As a reminder, President Trump signed an Executive Order in January addressing reducing regulation and controlling regulatory costs. Specifically the Order provided, “…it is important that for every one new regulation issued, at least two prior regulations be identified for elimination, and that the cost of planned regulations be prudently managed and controlled
through a budgeting process.”

To that end, on Aug. 29, the EEOC was informed that a review as to the new burdens that would be placed on employers under the pay data reporting regulations is being initiated. Furthermore, an immediate stay (suspension) was placed on the requirement for an employer to report pay information.

Therefore, the previously approved EEO-1 form which collects data on race, ethnicity and gender by occupational category remains in effect. However, employers may still plan on complying with the previously set filing date of March 2018.

Employers with 100 or more employees are required to file an annual EEO-1 report. A 2016 revision to the form would require an employer to report pay data information. However, this pay data reporting requirement has been suspended as of Aug. 29. However, employers should continue to monitor any further guidance from the EEOC.