NEW EEOC PAY REPORTING DUE SEPTEMBER 30th
Employers with 100 or more employees and federal contractors with 50 or more employees are likely very familiar with Employer Information Reports (“EEO-1 Reports”) that must be submitted each year. Over the years, such employers have been required to disclose the number of employees they have, broken down by job category, race and sex. The stated purpose of collecting such information is to assist the Equal Employment Opportunity Commission (“EEOC”) with analyzing employment patterns and assisting with civil rights enforcement.
In 2016, the EEOC under the Obama administration required employers to also report pay and hours worked data. The EEOC indicated that the additional data would assist in identifying potential discriminatory gaps in pay. Initially, employers were to begin providing the additional data by March 31, 2018. However, the EEOC under the Trump administration changed course in 2017 and abandoned the new requirements.
In response, a number of advocacy groups, including the National Women’s Law Center, filed a lawsuit against the EEOC and the Office of Management Budget seeking to force reinstatement of the pay and hours worked data reporting requirements. On March 4, 2019, the federal judge presiding over the lawsuit reinstated the pay and hours worked reporting requirements, ruling that the government had failed to present a “reasonable explanation” for rescinding the requirements.
So, what does this mean for affected employers? The EEOC has set September 30, 2019, as the deadline for employers to provide the pay and hours worked data for both calendar years 2017 and 2018 (the deadline of May 31, 2019 remains for the traditional demographic data). The EEOC also has announced that it will offer training sessions and detailed information to employers to assist with understanding the new obligations. While the EEOC has not yet posted the final version of the form, a .pdf version of the originally proposed form is attached.
Although the EEOC has filed an appeal of the federal judge’s ruling and litigation of this issue is likely to continue for some time, currently, there is no stay of the September 30, deadline. Therefore, employers should begin gathering the required data, especially considering the scope and burdensomeness of this new data request. Should you have questions regarding data collection for the new requirements, please contact the Firm attorney with whom you regularly work or any other Firm attorney.