EEOC Pay Data Rule: Federal Court Overturns OMB’s Stay of EEOC Pay Data Collection Rule as “Arbitrary and Capricious”; EEOC Not Yet Requesting Pay Data.

Sullivan & Cromwell LLP - March 21, 2019

On March 4, the Honorable Tanya S. Chutkan of the U.S. District Court for the District of Columbia vacated an August 29, 2017 decision by the Office of Management and Budget to stay the Equal Employment Opportunity Commission’s requirement that employers use a revised EEO 1 form to report pay data information by employee job position, gender, race and ethnicity. The court’s decision means that the revised EEO 1 form is technically now in effect. On March 18, however, the EEOC opened its portal for employers to submit their annual EEO 1 forms, omitting any request for pay data. In addition, the EEOC issued a statement stating that it is “working diligently on next steps in the wake of” Judge Chutkan’s order and that it will “provide further information as soon as possible.” The next day, Judge Chutkan chastised government lawyers for failing to quickly implement her order and gave the government until April 3 to explain how and when it plans to implement her March 4 order.