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Scopelitis Labor & Employment Newsletter - EEO-1 Reporting

by A. Jack Finklea, Sara L. Pettinger, David D. Robinson, Donald J. Vogel

March 18, 2019

Scopelitis Labor & Employment News – EEO-1 Reporting

Prepare Now for EEO-1 Pay Data Reporting Requirement
It appears that the Equal Employment Opportunity Commission’s new pay data reporting requirement is finally taking effect, leaving employers scrambling to meet the May 31, 2019 EEO-1 submission deadline.  This new requirement mandates that employers supplement their EEO-1 reporting forms with certain categories of compensation and hours worked information.  

On Again – Off Again
As observers will recall, the EEOC first proposed this new requirement back in 2016 during the Obama administration as part of an interagency effort to combat pay discrimination.  Historically, the EEO-1 form has required covered employers (e.g. those with 100 or more employees; qualifying government contractors) to report only the number of employees across 10 job categories according to race/ethnicity and gender.  The revised EEO-1 form will require employers to submit aggregate W-2 earnings and hours worked in 12 pay bands for each of the 10 job categories.           

Following the election and change in administration, the Office of Management and Budget (OMB) stayed the revised EEO-1 form in August 2017.  It remained subject to this stay until March 4, 2019 when a U.S. District Court ruled that the stay was “arbitrary and capricious” and ordered that it be reinstated.             

Continued Uncertainty
Prior to this ruling, and as a result of the recent government shutdown, the EEOC had extended the EEO-1 submission deadline to May 31, 2019.  With the stay now lifted, employers will be scrambling to gather and submit the required compensation and hours worked information.  It is possible that the government will appeal the District Court’s decision and seek a continued stay of these requirements pending appeal.  It is also possible that the EEOC could recognize the burden this creates for employers and agree to unilaterally postpone this new requirement to provide employers (who have been relying on the stay) more time to prepare.  With little guidance as of now, employers are urged to begin gathering the necessary pay and hours data immediately. 

Contact David Robinson, Jack Finklea, Don Vogel or Sara Pettinger for questions relating to EEO-1 reporting. For any additional information on our Firm, please follow Scopelitis on social media or visit our Labor & Employment Practice Area page.

 

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News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

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