Trump Administration Budget Office Stays EEOC Rule That Would Have Imposed Pay Data Reporting Requirements in Employer Information Report (EEO-1)

In August 29 Memorandum, OMB Announced Review and Immediate Stay of Rule That Would Have Required Employers to Submit Pay Data Information by Gender, Race and Ethnicity September 5, 2017
In September 2016, the EEOC finalized a rule that would have required employers with 100 or more employees to collect and submit pay data on their employer information report, known as the EEO-1, beginning in 2018. The current EEO-1 only collects data about gender, race and ethnicity by job category. The revised form would have required employers to provide that information with (i) summary pay data, i.e., a reporting of the total number of full and part-time employees by demographic and job category in each of 12 pay bands; and (ii) the number of hours worked by employees in each pay band. According to the EEOC, the additional data was intended improve its investigations in pay discrimination based on gender, race and ethnicity.

This rule was considered a likely target for revocation by the recomposed EEOC; in March 2017, Victoria Lipnic, a Republican commissioner who had opposed the new data rule, was named EEOC Acting Chair. Prompted by Lipnic, as well as various U.S. senators, the White House’s Office of Management and Budget indefinitely stayed the rule’s implementation.  It stated in its Memorandum to the EEOC that the decision was based on concerns that the regulation does not comply with the Paperwork Reduction Act, as well as concerns “that some aspects of the revised collection of information lack practical utility, are unnecessarily burdensome, and do not adequately address privacy and confidentiality issues.”

The OMB asked the EEOC to submit a new proposal for the information to be collected for the EEO-1 form. The EEOC may provide more information to justify the original approach in its revised submission, it may abandon the effort entirely, or it may propose a modified level of pay data reporting. Acting Chair Lipnic has stated that she considered the rule overly burdensome to employers.

The EEO-1 reporting requirements as to gender, race and ethnicity by job category remain in effect; employers must file their reports for 2017 by March 31, 2018.