CLIENT UPDATE

Putney, Twombly, Hall & Hirson LLP
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January 29, 2016

EEOC Announces Proposal To Require More Pay Data From Large Employers

On January 29, 2016, the United States Equal Employment Opportunity Commission (“EEOC”) announced a proposed revision to the Employer Information Report, also known as the EEO-1 Survey (“EEO-1”), to require federal contractors and other employers with more than 100 workers to provide more pay data, which the agency says will help uncover potential pay discrimination. A copy of the proposed changes may be found at https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-01544.pdf.

EEO-1 data currently provides EEOC with workplace profiles from private sector employers by race, ethnicity, sex, and job category.  According to EEOC, if enacted, the proposal would add aggregate data on pay ranges and hours worked to the information collected, beginning with the September 2017 report.
The new pay data would provide EEOC and the Office of Federal Contract Compliance Programs of the Department of Labor with insight into pay disparities across industries and occupations. The proposed rule would allow these agencies to use this pay data to assess complaints of discrimination, focus agency investigations, and identify existing pay disparities that may warrant further examination.

Take Away for Employers

EEOC will officially publish the proposed rule in the Federal Register on February 1, 2016. The public will have 60 days to submit comments to EEOC concerning the proposed rule.  The new rule, if adopted, will significantly increase the amount of time and effort necessary for employers to complete the EEO-1 form.  It may also lead to greater enforcement efforts by the EEOC.

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If you have any questions regarding the proposed rule or Employer Information Reports, please do not hesitate to contact us.