OMB Announces Suspension of EEOC’s New EEO-1 Wage Reporting Requirement

On August 29, 2017, the Office of Management and Budget (OMB) informed the Equal Employment Opportunity Commission (EEOC) that it is suspending implementation of the EEO-1 form that was revised on September 29, 2016, in accordance with the OMB’s authority under the Paperwork Reduction Act (PRA).  This means that employers will not be required to report salary information with the EEO-1 Report due on March 31, 2018.

EEO-1 reporting will continue to be required consistent with the previous regulations.  Private employers with 100 or more employees, as well as federal contractors and subcontractors with 50 or more employees and contracts of $50,000 or more will be required to report the age, sex, and race of their workforce in nine different job categories.  The report will need to be filed March 31, 2018.

The EEO-1 Report – formally known as the “Employer Information Report” – is a form requiring employers to provide a count of their employees by job category and then by ethnicity, race, and gender.

As previously detailed by this blog, on January 28, 2016, the EEOC unveiled plans to require employers with 100 or more employees to report employee pay data in September 2017 EEO-1 Reports, in an effort to uncover potential pay discrimination.  Eventually, the requirement was delayed until March 2018, and now has been abandoned entirely.  The scaling back of the EEO-1 Report to previous requirements is welcome news for many employers.

The EEOC enforces the federal Equal Pay Act of 1963 and Title VII of the 1964 Civil Rights Act, among other laws.  With regard to this announcement, Acting Chair of the EEOC, Victoria Lipnic, said:

“Going forward, we at the EEOC will review the order and our options. I do hope that this decision will prompt a discussion of other more effective solutions to encourage employers to review their compensation practices to ensure equal pay and close the wage gap. I stand ready to work with Congress, federal agencies, and all stakeholders to achieve that goal.”

Employers with questions regarding this change in law or the EEO-1 requirements may contact the author or their usual counsel at Atkinson, Andelson, Loya, Ruud & Romo.

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