March 2, 2016

EEOC Proposes New Pay Reporting Requirement to Combat Pay Discrimination

On Friday, January 29, 2016, the Equal Employment Opportunity Commission (“EEOC”) proposed revisions to the Employer Information Report (“EEO-1”) that are intended to identify pay discrimination and promote equal pay in the workplace. The EEO-1 already requires federal contractors with more than 50 employees, and all employers with 100 or more employees, to report the number of employees they employ by job category, race, ethnicity, and sex. The proposal would revise the EEO-1 to require employers with 100 or more employees to disclose aggregate data on pay ranges and hours worked in their reports.

Employers and the general public will have 60 days to submit comments to the proposal. Given the additional burdens the requirement would impose, employers are encouraged to submit comments. If the proposal is approved, covered employers will be required to report pay data beginning September 2017.

This proposed pay reporting requirement was announced by the White House as one of several steps the Obama Administration is taking to advance its equal pay agenda. President Obama also called on Congress to pass the Paycheck Fairness Act that would substantially broaden enforcement provisions of the current federal Equal Pay Act. This announcement comes on the heels of amendments to California’s Fair Pay Act, which went into effect January 1, 2016, giving California some of the most expansive equal pay protections in the nation.

Employers concerned about the EEOC’s pay data reporting proposal or compliance with California’s Fair Pay Act should consult legal counsel. The Employment Law Group at Payne & Fears LLP has the experience needed to assist employers with the many challenges related to federal and state equal pay requirements.