As you may recall, EEOC modified the requirements of the EEO-1. Although the report is typically due September 30 each year, there's a reprieve in 2017 and your reports are not due until March, 2018, because of the extra required compensation data that must be made available to the EEOC.
In September 2016, the EEOC finalized a rule modifying the EEO-1 report. Employers with over 100 employees, or federal contractors with more than 50 employees, annually report to the EEOC regarding their workforce demographics. The modifications with the final rule require that employers also need to report summary pay data based on an employee's W-2 Box 1 earnings. Those earnings are broken down into 12 pay bands and then separated by job category, gender, and race/ethnicity. See EEOC's FAQ here for more info.
Besides the additional work to gather this data, as well as the potential risk of the EEOC identifying pay disparities and knocking on your door, employers are concerned about how to even get the data. Oftentimes W-2 wage information is part of payroll. But job category, gender, and ethnicity/race is in applicant tracking or HRIS system. So obtaining information from two different systems and then trying to consolidate it will be challenging for many.
The US Chamber of Commerce had filed an objection to the final rule back in 2016, but until recently, there was no way appointed to the agency tasked with overseeing this objection (the Office of Information and Regulatory Affairs, OIRA). Evidently, now that there is an appointment in place , the acting chair of the EEOC, Vicki Lipnic, is working with OIRA to determine whether to modify the rule. Reportedly if changes are going to be made, it is expected they will be made by late August so employers have the information necessary as they prepare to file their EEO-1 reports.
What can you do?
If your organization is one that will be particularly challenged by the new data gathering, now is the time to let OIRA and EEOC know. Contact either agency before the end of August so your voice can be part of the consideration. It doesn't have to be a 10-page formal objection like the Chamber of Commerce; rather, any story about the burden this will put on your organization to gather the data is a powerful story and helps many other employers.
OIRA, Office of Management and Budget, 725 17th Street NW, Washington, D.C. 20503
EEOC, 131 M Street NE, Washington, DC 20507
It doesn't have to be a 10-page formal objection like the Chamber of Commerce; rather, any story about the burden this will put on your organization to gather the data is a powerful story and helps many other employers.
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