April 23, 2019

April 23, 2019

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April 22, 2019

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The EEOC Pay Data Requirements Are Back – It’s Time for Employers to Pay Attention

Recent developments will soon require employers with more than 100 employees to report their pay data to the U.S. Equal Employment Opportunity Commission (“EEOC”).

On March 4, 2019, the U.S. District Court for the District of Columbia revived a 2016 EEOC requirement that employers report the wages and hours of their workers, broken down by gender, race, ethnicity and job category (executives, professionals, sales workers, etc.). The deadline for compliance with the requirement is currently set for May 31, 2019.

Most private employers and federal contractors are already required to annually disclose employment data that is categorized by gender, race, ethnicity, and job category to the EEOC using the agency’s form EEO-1 Report. The EEOC’s decision to expand its required collection to include pay data originated from a prior proposal by the Department of Labor to collect pay data from federal contractors as a means of addressing wage disparities.

The EEOC finalized its pay data collection requirement in August 2016; however, the White House’s Office of Management and Budget (“OMB”) later stayed the implementation of the collection requirement on the ground that it would be too burdensome for employers. Advocates for expanded reporting filed suit against the OMB and the EEOC in November 2017. The U.S. District Court for District of Columbia subsequently ruled that the OMB failed to provide an adequate basis for its decision to stay the data collection. Consequently, the court vacated the stay and ordered the EEOC to implement the collection requirement.

It remains unclear whether the OMB will appeal this latest decision and whether employers will need to comply with the EEOC’s requirement by its stated May deadline. Accordingly, it is anticipated that the EEOC will soon issue guidance to employers regarding the timing of its pay data collection requirement. In the meantime, employers should take note of possible pay disparities within their workforces and take steps to ensure that their pay records are up to date.

© 2019 Vedder Price

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About this Author

Candice T. Zee, Vedder Price, Labor and employment lawyer
Shareholder

Candice T. Zee is a Shareholder at Vedder Price and a member of the Labor & Employment practice area in the firm’s Los Angeles office.

Ms. Zee focuses her practice on traditional labor issues, including unfair labor practice charges, interpretation of collective bargaining agreements, grievances, arbitrations and National Labor Relations Board proceedings. She has handled several union grievances, arbitrations and representation cases at all stages and has extensive experience managing and overseeing union election campaigns. 

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Elizabeth N. Hall, Vedder Price Law Firm, Labor Employment Attorney
Shareholder

Elizabeth N. Hall is a shareholder  in the firm’s Labor and Employment Practice Area.  Her experience includes defending employers before state and federal courts and administrative agencies in all types of individual employee and class action labor and employment litigation including equal employment opportunity, wrongful and retaliatory discharge and wage and hour issues.  Ms. Hall has successfully argued procedural and employment discrimination issues in the United States Court of Appeals for the Seventh Circuit, and has particular expertise managing electronic discovery in complex individual plaintiff and class action litigation.

312-609-7795
Monique Chase, Vedder Price Law Firm, New York, Labor and Employment Litigation Attorney
Associate

Monique E. Chase is an Associate in the New York office of Vedder Price and a member of the firm’s Labor & Employment practice area.

Ms. Chase represents clients in employment-related matters in federal and state court, before governmental agencies and regulatory bodies, and in ADR settings. She advises clients in a range of subjects, including discrimination, harassment and retaliation claims, disability accommodation and leave laws, Dodd-Frank and Sarbanes-Oxley whistleblower claims, background screening...

212-407-7774