EEOC’S CONTROVERSIAL EEO-1 CHANGE WOULD ROOT OUT PAY DISCRIMINATION

by Amanda Shelby | March 20th, 2016

Equality needs to be understood in every way possible.  From getting a fair shake at a job you are highly qualified to getting paid fairly amongst your peers that share the same job classification.   Equal pay for equal job in my opinion.  The only outlier to this is when you are paid a commission.  My belief is when in sales, you give yourself your raise every time you sell something.  But to that extent, not everyone is a sales person, are they? ~The Organic Recruiter

The EEOC’s proposed amendment to the EEO-1 would require employers with 100 or more employees to report pay data in addition to their workforce demographics.

The proposed revision to the EEO-1 would require employers with 100 or more employees to also report aggregate data on employees’ pay range and hours worked beginning with the 2017 EEO-1 report.

The EEOC has proposed using aggregate W-2 data in 12 pay bands for the 10 current EEO-1 job categories. “Employers will simply count and report the number of employees in each pay band. For example, a filer will report on the EEO-1 that it employs 3 African[-]American women as professionals in the highest pay band.” The EEOC believes this method for collecting and reporting pay data not only will be more likely than others to generate reliable data but also will be less burdensome for employers than other possible alternatives.

If this change sounds familiar, it’s because the EEOC’s proposed rule is similar to-and replaces-a rule proposed by the U.S. Department of Labor that would have required federal contractors to submit comparable pay information in their annual equal pay reports to the Office of Federal Contract Compliance Programs.

To “Assist the agency in identifying possible pay discrimination”; and To “Assist employers in promoting equal pay in their workplaces.”

Even an individual claim could be costly because it will require the employer to justify not only the employee’s pay but also the pay of all of her comparators.

If you anticipate that your company will be subject to the rule, consider asking your employment law counsel to review your pay practices and evaluate your risk before you’re forced to disclose your employees’ pay data next year.

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