February 11, 2016

Federal Government to Force Employers to Reveal Pay Information by Gender

President Obama proposed executive action through the U.S. Equal Employment Opportunity Commission (EEOC) to require certain businesses to provide detailed information about how much each employee earns.  To that end, the EEOC has proposed revisions to the Employer Information Report (EEO-1) to include collecting pay data from employers, including federal contractors, with more than 100 employees.  Affected employers will be required to break down pay information by gender, race, and ethnicity.   This new data will assist the EEOC in identifying possible pay discrimination and assist employers in promoting equal pay in their workplaces.  The EEOC’s draft of the proposed changes to the EEO-1 form is now available for inspection and comment here.  If the proposals proceed as scheduled, Employers would submit pay data as of the September 30, 2017 EEO-1 filing deadline.  

If your business has over 100 employees, unaddressed gaps in pay could put your business at risk for action by the EEOC and for employee lawsuits. That’s why now is the time to review your pay data for possible pay gap issues. Call us for help with this review and for advice on the best ways to address current pay gap issues.