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EEOC Proposes To Collect Pay Data From Employers

The EEOC recently announced that it intends to revise the Employer Information Report (EEO-1) to require all employers with 100 or more employees to report data on employees' W-2 earnings and hours worked.

If you employ more than 100 employees or are a federal contractor, you already complete the EEO-1 Report which requires you to annually disclose to the EEOC the number of employees you employ by job category and by ethnicity, race, and sex.  This obligation stems from a provision of Title VII of the Civil Rights Act that requires employers to make and keep records relevant to the determination of whether unlawful employment practices have been or are being committed by the employer.

In seeking to add another category of information to the EEO-1, the EEOC provides the following explanation:

"The new pay data would provide EEOC and the Office of Federal Contract Compliance Programs (OFCCP) of the Department of Labor with insight into pay disparities across industries and occupations and strengthen federal efforts to combat discrimination. 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 EEOC will accept comments on its proposal until April 1, 2016, after which public hearings will be held.

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