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April 29, 2019

Federal Judge Rules Trump Administration Must Collect Expanded Pay Data

As The National Law Journal reported last week, Judge Tanya S. Chutkan of the U.S. District Court for the District of Columbia has given the Equal Employment Opportunity Commission (EEOC) until Sept. 30, 2019 to start collecting pay data related to race, sex, and ethnicity from companies that have more than 100 employees.

Politico explained the ruling reinstated the Obama EEOC’s expanded EEO-1 form, which was intended to “better focus investigations on employers who are illegally shortchanging workers’ pay based on their gender, race, or ethnicity.” Judge Chutkan also ordered the EEOC to collect two years’ worth of data.

The law firm Ogletree and Deakins noted, “While the exact details of how this pay data will be collected are unknown, there are early reports suggesting that the format for the pay collection will be similar to the collection structure proposed” in 2016 by the Obama administration. That mechanism “would require employers to use 2018 W-2 Box 1 information to place all employees in a series of 12 pay bands that will then be further sorted by gender, race/ethnicity, and EEO-1 category.”

Employers also would then be required to report the total number of employees and the total hours worked in 2018 for each pay band subset. Stay tuned to Connecting the Dots as this story develops.