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.