The EEOC issued a revised deadline for compliance with the employers pay data reporting requirements. Back in February, the EEOC unveiled its proposal requiring employers with more than 100 employees, including nonprofit employers, to report employee compensation and hours worked on the employer’s Employer Information Report (“EEO-1”). The EEOC will use this data to address discriminatory pay practices and enforce federal anti-discrimination laws. The proposal, which originally was set to take effect in 2017, has been delayed until March 31, 2018. However, employers have to begin tracking pay data beginning in January of 2017.
Currently, EEO-1 forms require reporting employee sex, race, and ethnicity. The proposed expansion of the EEO-1 reporting requirements would require employers to identify employee job category, pay data from the employee’s IRS Form W-2, and the total number of hours worked. The pay data would be reported in ‘pay bands’ in an effort to protect employer’s confidentiality. Employers would report how many employees, and each employee’s sex, race, and ethnicity, are in each pay band (e.g. $19,239 and under, $19,240-$24,439, etc.) for each EEO-1 job category. The proposed EEO-1 is available here. The EEOC plans to share the pay data with the Office of Federal Compliance Contract Programs (“OFCCP”) who will make this new pay data available to the public.
The key revision to the July updated rule is the delay in implementation. The 2016 EEO-1 reporting deadline, which does not require pay data information, is September 30, 2016. There will be a year and a half gap between the 2016 EEO-1 report deadline and the 2017 EEO-1 report deadline. The 2017 EEO-1 report will be due on March 31, 2018. The deadline to submit comments on the proposed rule is August 15, 2016. The final regulations will likely be released in late 2016 or early 2017.
- If you do not currently file an EEO-1 report, you will not have to comply with the pay data reporting requirements.
- There are some employers, such as federal contractors with 50-99 employees, that currently have to fill out EEO-1 report but these employers would not have to report pay data as they have fewer than 100 employees.
- Employers would not have to report individual pay or salaries, but would instead report number of employees with salaries in each pay band.
- Pay data is not included on the September 30, 2016 EEO-1 report. Any changes would be implemented for the September 30, 2017 EEO-1 report.
For more information or assistance, please contact Denis Jacobson at (336) 271-5242 or email@example.com