The Equal Employment Opportunity Commission (“EEOC”) just released an updated EEO-1 reporting form that requires employers to provide employee pay data beginning in March 2018. A sample of the proposed form can be found here.
Importantly, many companies are not required to complete an EEO-1 form. With limited exceptions, only private employers with one hundred (100) or more employees and federal contractors with fifty (50) or more employees must make the filing each year.
This is the first time that pay information will be reported on the EEO-1 filing. According to the EEOC, collecting pay data from the EEO-1 Form will help improve investigations into pay discrimination based on gender, race, and ethnicity. Critics argue that the data will not serve the agency’s intended purpose and will increase administrative costs on employers.
These changes highlight the EEOC’s current focus on equal pay issues. Employers should be proactive and consider conducting an internal audit to determine whether you have pay disparities that need to be addressed. Identifying pay disparities in advance can help companies decide whether a pay adjustment should be made or whether the disparities can be explained through legitimate justifications.