New Wage Reporting Obligations for Large Employers Delayed

By Scott Seidman

We previously reported on a decision by the U.S. District Court for the District of Columbia to reinstate a requirement instituted by the EEOC in the last year of the Obama Administration for employers to report pay data. The ruling in the case required the Office of Management and Budget (OMB) to grant a three-year approval of a revised EEO-1 form that would add new equal employment opportunity information to what the EEOC already collected from employers.

Specifically, the new EEO-1 form would require employers with 100 or more employees (50 or more employees for government contractors) to report not only the number of individuals employed by job category, sex, race, and ethnicity, as has been the case under the current form, but also to report pay data as well. Employers meeting this size requirement would have to report aggregate W-2 wage and hour data in 12 "pay bands" for the 10 job categories on the EEO-1 form, showing the number of employees in each band by ethnicity, race, and sex.

The original opinion by Judge Tanya Chutkin required employers to report the information for 2018 by May 31, 2019. However, the EEOC asked the Judge to delay the reporting obligation for four months until September 30, 2019.

Though Judge Chutkin castigated the EEOC for its foot-dragging, she granted the request. However, employers will be required to report not only 2018 wage data but also the same data for 2017.

This means that the government did not appeal Judge Chutkin's original decision granting summary judgment, as many thought the Trump Administration would. It also means that employers have more time to file their new EEO-1 forms but must report the requested wage data for each of the last two years.

Reporting employers may access the new form by logging in to their accounts here.

This update is prepared for the general information of our clients and friends. It should not be regarded as legal advice. If you have further questions on this topic, please email a member of our Labor & Employment Practice Group, or the attorney with whom you normally consult.

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