As many of you probably know, the EEOC has issued a proposed rule that, if adopted, would require significant changes to the EEO-1 reporting requirements. The rule proposal is designed to help the EEOC gather data related to pay discrimination claims. If adopted, it will require employers who are required to complete annual EEO-1 reports to submit pay data for all employees in addition to the number of employees in each racial classification.
This rule is likely going to increase the number of investigations and complaints filed alleging pay disparity. The EEO-1 reports, by themselves, will be used in a broad sense to identify statistical anomalies that may trigger an investigation. Missing from that raw data will be any legitimate reasons for pay disparities, such as experience and education levels. However, employers will be required to comply with what could be a lengthy investigation process.
The comment period is currently scheduled to end on April 1, 2016. Recently, ten Republican senators sent a letter to the EEOC asking for the comment period to be extended 90 days. No word yet on whether the extension will be granted.
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