Requirement To Use New EEO-1 Form Stayed
Although the Trump Administration has rolled back numerous Obama-era Executive Orders and other rules and policies intended to help workers, employers have been holding their collective breath, wondering whether the revised Employer Information Report (EEO-1), with its onerous pay data collection requirements, would survive.
On August 29th, the Office of Management and Budget (OMB) informed the Equal Employment Opportunity Commission (EEOC) that in accordance with its authority under the Paperwork Reduction Act (PRA), it is initiating a review and immediate stay of the effectiveness of the pay data collection aspects of the EEO-1 form that was revised on September 29, 2016. This action comes just a few weeks shy of the reporting period that was to be used as the EEO-1 “snapshot” period (one pay period during the three-month period from 10/1/17 to 12/31/17).
The revised form would have required employers and federal contractors with 100 or more employees to begin submitting summary pay data based on W-2 wage information for the 2017 calendar year on March 31, 2018. It created new requirements to submit summary compensation data categorized by gender, race and ethnicity, including a requirement to report hours worked by employees in 10 job categories divided by 12 pay bands per category. The 12 pay bands ranged from the lowest band of $19,239 and under, to the highest band of $208,000 and over. Sex, race and ethnicity counts were to be included for each pay band, along with the aggregate hours worked by all employees accounted for in each pay band.
This detailed compensation data collection purported to be a way for the Equal Employment Opportunity Commission (EEOC) to combat pay discrimination on the theory that the information would enable the EEOC to identify employers who might be discriminating against minorities and/or females. The EEOC planned to publish aggregated EEO-1 data and industry reports on a periodic basis, with the idea that such reports might provide useful comparative data for private employers and federal contractors, as well as small employers who would be able to use the data to conduct voluntary self-assessments of their pay practices, remedy pay disparities and comply with state and federal equal pay laws. The Office of Federal Contract Compliance Programs (OFCCP) intended to use the EEO-1 data to help identify federal contractors and subcontractors for compliance reviews under E.O. 11246.
The prior EEO-1 form that employers are accustomed to using collects data on race, ethnicity and gender by occupational category. It will remain in effect, and employers will be required to comply with the March 2018 filing date that was to have applied to the revised form. The EEOC is expected to publish further details in the near future. As always, Saul Ewing’s Labor and Employment attorneys will keep you informed as this story develops.