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President Obama expected to announce new EEO-1 Reporting Requirements

2016-01-29

Today, President Obama is expected to announce new EEO-1 reporting requirements which will include the submission of a pay equity report. According to the advance copy of EEOC publication in the Federal Register, the proposed revision to the EEO-1 report will have two components: (1) collects the same data that is currently gathered and (2) collects data on employees’ W-2 earnings and hours worked. Starting in September 2017, employers with 100 or more employees would submit data for both components.  Government contractors with 50 to 99 employees would only submit data on Component 1. 

What type of data will be collected?  The EEOC has proposed using “pay bands” for reporting W-2 data to maintain employee anonymity.  The W-2 data will be aggregated in 12 pay bands for the 10 EEO-1 categories.  “Employees will simply count and report the number of employees in each pay band.”  For hours worked, the EEOC “will collect the total number of hours worked by the employees included in each EEO-1 pay band cell.”  EEOC stated that it is “not proposing to require an employer to begin collecting additional data on actual hours worked for salaried workers, to the extent that the employer does not currently maintain such information.” 

What will EEOC do with the data?  EEOC believes that the collection of pay band data will allow it “to complete within-job category variation, across-job-category variation, and overall variation, which would support the EEOC’s ability to discern potential discrimination while preserving confidentiality.”  EEOC believes that the hours worked data will allow “analysis of pay differences while considering aggregate variation in hours.” 

This supports President Obama’s April 8, 2014 Memorandum directing the Secretary of Labor to develop a compensation data collection proposal.  In response to that Memorandum, the OFCCP published a proposed rule for contractors to submit “compensation data reports” to OFCCP. 

In a Memorandum from President Obama, dated April 8, 2014, the Secretary of Labor was directed to develop a compensation data collection proposal.  While not openly acknowledged, this new requirement is intended to replace the OFCCP’s requirement that contractors submit “compensation data reports” to OFCCP.  

We encouraged you to submit comments to the proposed rule once the notice and comment period has opened.  This is to be published in the federal register on February 1, 2016.