Employers breathed a collective sigh of relief in August 2017, when the Office of Management and Budget (OMB) announced it was staying the requirement that employers report W-2 wage information in the annual EEO-1 Report. Now, though, the reprieve seems over. On March 4, 2019, the District of Columbia Federal Court ruled that OMB improperly issued the stay without good cause, and put the wage report back into effect. See National Women’s Law Center v OMB, No. 1:17-cv-2458 (D.D.C. March 4, 2019).
The day employers have been waiting for, has finally arrived. The government has indefinitely stayed the requirement that companies begin reporting “Component 2” wage data in their EEO-1 Reports. Companies around the country are breathing a collective sigh of relief.
Hunton & Williams recently published an entry on its Retail Law Resource Blog regarding what employers can expect from Victoria Lipnic, the new acting chair of the Equal Employment Opportunity Commission (“EEOC”) and an EEOC Commissioner since 2010. Since that publication, Lipnic has made public comments as to what she envisions from the EEOC under her leadership. Several key topics from those comments are summarized below:
As previously reported, the EEOC announced on January 29, 2016 its proposal to require businesses with 100 or more employees to annually turn over pay data by gender, race and ethnicity. The public has until April 1, 2016 to submit comments on the proposal. Both the Retail Industry Leaders Association (RILA) and the U.S. Chamber of Commerce have issued statements that the proposed requirements would be overly burdensome for employers and would result in the collection of data that would fail to provide any meaningful insights as to whether employer pay practices are discriminatory. Additional organizations are expected to comment, including the National Federation of Independent Business, but as it stands, the EEOC anticipates requiring the additional pay as part of the EEO-1 reports due on September 2017. We will continue to report as things develop.
The Equal Employment Opportunity Commission announced on January 29, 2016 its proposed revision to the Employer Information Report (EEO-1) that would obligate businesses with 100 or more employees to annually turn over pay data by gender, race and ethnicity. Although employers will not have to divulge specific pay rate information for individual employees, they would have to report pay bands across 10 different job categories.