By Bill Wright
Citing continuing pay gaps correlated with sex, race and ethnicity, the EEOC is moving forward with its proposal to require employers to submit pay data along with their EEO-1 reports. The revised proposal is open for public comment for 30 days. https://www.eeoc.gov/eeoc/newsroom/release/7-13-16.cfm
The proposed rule will affect private employers with 100 or more employees. These employers will have to report W-2 wages (Box 1 of the W-2 form), non-exempt employees’ hours worked (as defined under the FLSA), and actual or estimated hours worked by exempt employees, all in each of 12 pay bands, by ethnicity, race and gender. The workforce information will be based on a “workforce snapshot” of a pay period in October, November or December of the reporting year. The wage information will be based on the W-2 calculation made as of December 31 of the reporting year, and the hours information will be for the full calendar year. The first such report will be due in on March 31, 2018 based on 2017 data. (Employers still must file their September 2016 EEO-1 report based on July, August or September.)
The EEOC and OFCCP hope the data will help them investigate “potential pay discrimination” without having to go through the bother of “a detailed request for information or a subpoena.” For example, the EEOC promises to train its investigators on how to use pay data for “issue spotting” in the Charge intake process and to guide intake interviews. We can only imagine the EEOC’s future demands that employers justify apparent wage inequalities with every Charge of Discrimination or Retaliation.