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Business Community Requests Rejection of Revised EEO-1 Report Requiring Disclosure of Pay Data

The U.S. Chamber of Commerce (the “Chamber”), along with several business associations, has requested that the Office of Management and Budget (“OMB”) rescind its prior approval of the EEOC’s revised EEO-1 Report requiring disclosure of pay data information by gender, race, and occupational category due to the cost and time associated with compliance. The Chamber’s request was backed by the Society for Human Resource Management, National Restaurant Association, National Retail Federation, National Automobile Dealers Association, and others.

In a letter addressed to OMB, the group argued that the EEOC had not satisfied its burden under Section 3517 of the Paperwork Reduction Act (“PRA”). Section 3517 requires that when the federal government seeks to collect information from the public, the relevant agency should 1) minimize the burden imposed on those required to comply with government requests; 2) maximize the utility of the information sought; and 3) ensure that the information provided is subject to appropriate confidentiality and privacy protections.

According to these groups, the EEOC failed to accurately or adequately address the burden placed on companies required to submit the revised EEO-1 Report. Specifically, the EEOC failed to address the cost to employers for upgrading their HRIS systems to accommodate the request for pay data and the amount of time it would take to do so.

In advocating for rejection of the new pay disclosure rule, the associations also relied upon President Trump’s January 30, 2017 Executive Order on Reducing Regulation and Controlling Regulatory Costs which noted that “it is essential to manage the costs associated with complying with federal regulations” and directed all agencies to re-evaluate pending regulations.

As of March 31, 2017, Randy Johnson, a senior vice president with the Chamber, stated that OMB has still not responded to the letter, and noted that the issue is among the Chamber’s top labor priorities.

Jackson Lewis P.C. © 2019

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About this Author

Stephania C. Sanon, Labor and Employment Associate, Long Island, Jackson Lewis Law Firm
Associate

Stephania C. Sanon is an Associate in the Long Island, New York, office of Jackson Lewis P.C. Her practice is focused on representing employers in workplace law matters, including preventative advice and counsel.

She represents employers in a wide range of labor and employment law matters, including claims of discrimination and retaliation brought pursuant to Title VII, the Age Discrimination in Employment Act, the Americans with Disabilities Act, as well as state and local laws prohibiting discrimination.

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Stephanie E. Lewis, Jackson Lewis, Managing Principal, Policy Litigation Attorney,
Office Managing Principal

Stephanie E. Lewis is the Office Managing Principal of the Greenville, South Carolina, office of Jackson Lewis P.C. She represents employers in employment litigation and advises clients on preventive practices and policies to avoid litigation.

Ms. Lewis has handled all aspects of employment law but focuses on sexual harassment, pay discrimination, and disability discrimination issues in the automotive, manufacturing, retail, and pharmaceutical industries. She regularly presents on employment-related topics to Bar and industry groups.

Ms. Lewis served as a law clerk for Karen Johnson Williams of the Fourth Circuit Court of Appeals and Patrick Michael Duffy of the United States District Court for the District of South Carolina.

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