As first reported in last month's eLABORate, a federal court gave the green light to a long delayed Obama-era requirement for employers to report their employee pay data to the Equal Employment Opportunity Commission (EEOC) as part of the yearly EEO-1 reporting requirement. Still, at the time of that ruling, it was unclear as to whether this new requirement on employers would have any effect on the then May 31, 2019 reporting deadline.
However, in a ruling this morning, a federal judge in Washington, D.C. set a September 30, 2019 deadline for employers to provide the pay information to the EEOC. The EEO-1 is an annual federally mandated survey. It requires all private employers with 100 or more employees and federal government contractors or first-tier subcontractors with 50 or more employees and a federal contract, subcontract or purchase order amounting to $50,000 or more to file the EEO-1 report with the EEOC. The survey requires company employment data to be categorized by race/ethnicity, gender and job category.
Supporters of the requirement say it will enable the EEOC to better address systematic pay gaps based on race, sex and other protected categories, while business groups argue that the new requirement is excessively burdensome on employers. The pay collection requirement was to have initially gone into effect in March 2018. However, in August 2017, the Trump Administration’s Office of Management and Budget indefinitely stayed the pay data collection requirement to review the requirements and the burden it would impose on employers. The court decision last month reviving the requirement was the result of lawsuits filed by employee advocate groups, including the National Women’s Law Center and the Labor Council for Latin American Advancement.
Employers can contact the Phelps Dunbar Phelps Labor and Employment team for more information and assistance. Please refer to the EEOC’s EEO-1 website for information regarding their reporting requirements.