Saturday, January 30, 2016

EEOC Proposes to Modify EEO-1 Form to Include Wage Data

The EEOC is proposing to change EEO-1 reporting requirements to add wage data.  Employers who file the EEO-1 (private sector employers with > 100 employees and federal contractors with > 50 employees) already report race and sex of employees in certain job categories.  If adopted, the proposal would require employers to report the W-2 wages earned by race and sex in each of the job categories for a one-year fiscal period.

The goal in part is to identify wage disparities and eliminate the widely reported "wage gap," which is not based on wage disparity within comparable jobs.  But the information gathered allegedly will permit EEOC analysts to perform statistical tests of employers' equal pay practices beyond the "wage gap."

The equal pay information also covers the EEO-1 race classifications, allowing the EEOC to assert Title VII claims based on disparate impact.  The Equal Pay Act addresses sex but not race. So, this proposed modification to the EEO-1 report is intended to address broader issues than the "wage gap" between all male workers and all female workers you hear about in the press.  The EEO-1 report's race information is often imprecise, so it will be interesting to see how the data is used going forward.

The agency will publish a proposed rule in the Federal Register on 2/1/16, and seek comments for 60 days.  If adopted, this proposal would take effect for the 2017 EE0-1 report.

The EEOC's press release is here.

Some FAQs are here.