February 1, 2016

White House Proposal Would Require All Private Employers With 100 Or More Employees To Submit Pay Data To EEOC

Last Friday, the Obama administration and the Equal Employment Opportunity Commission (EEOC) unveiled a new proposal that will require all employers with 100 or more employees to report their employees pay to the agency. (In 2014, President Barack Obama issued an order that required all federal contractors to provide this data.) 

Employers currently have to file what is called an EEO-1 Report, which provides the federal government with workforce profiles from private sector employers by race, ethnicity, sex, and job category. The new requirements would add aggregate data on pay ranges and hours worked to the information already collected. EEOC would like to begin collecting this new data in the September 2017 EEO-1 report. 

The administration hopes the new requirements will help address gender pay inequity. In an EEOC press release making the announcement the agency said, “This pay data would allow EEOC to compile and publish aggregated data that will help employers in conducting their own analysis of their pay practices to facilitate voluntary compliance. The agencies would use this pay data to assess complaints of discrimination, focus agency investigations, and identify existing pay disparities that may warrant further examination.” 

The public has until April 1, 2016 to comment on the proposed regulation, which is available on the Federal Register website for review.