EEOC Proposes Rule to Add Pay Data to EEO-1

On January 29, 2016, the Equal Employment Opportunity Commission announced proposed changes to its annual EEO-1 report. Specifically, the EEOC proposes that employers submit pay data as part of their EEO-1 reports. Starting in September 2017, the proposal would add aggregate pay data on pay ranges and hours worked to the information collected. Only employers with 100 or more employees would be affected by the changes.

According to the EEOC, collecting pay data will allow it to “assess complaints of discrimination, focus agency investigations, and identify existing pay disparities that may warrant further examination.” The agency intends to publish aggregated data so that employers can self-conduct audits of their own pay practices to help “facilitate voluntary compliance.” This proposal may place some employers at a greater risk of being investigated over their pay practices. Also, keep in mind that EEO-1 reports may be discoverable in litigation. Employers may want to prepare for the new rule by conducting an audit of their pay practices, taking steps to ensure such an audit is covered by the attorney-client privilege.

Public comments on this proposed rule are due by April 1, 2016.

The EEOC’s press statement can be found here.

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