More Good News! EEO-1 Pay Data Requirement Stayed

Volume 16, Issue 18
September 27, 2017

Last fall the EEOC announced that it would begin collecting employee pay data from certain employers through a revised EEO-1 Report.  Private employers, including federal contractors and subcontractors, with 100 or more employees were required to begin reporting in March 2018 summary pay data and aggregate hours worked data as part of their EEO-1 obligations. The EEOC wanted this data to "improve investigations of possible pay discrimination."  As you may remember, this new requirement was quite controversial.

The U.S. Office of Management and Budget (OMB) recently informed the EEOC that it has decided to immediately stay this new requirement.  The OMB explained that it 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 EEOC has issued a statement to notify employers that "[t]he previously approved EEO-1 form which collects data on race, ethnicity and gender by occupational category will remain in effect. Employers should plan to comply with the earlier approved EEO-1 (Component 1) by the previously set filing date of March 2018."

Employers who have already taken steps to comply with the pay data requirement should consider with counsel the utility of an internal analysis of the data gathered to determine whether any pay discrepancies exist between employees of different genders, races, ethnicities, or ages. Please contact a KZA attorney if you require assistance in this area or need more information regarding your EEO-1 obligations.

Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.