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eLABORate: EEOC Pay Data Collection Requirement Suspended Indefinitely

August 30, 2017

Last September, the Equal Employment Opportunity Commission (“EEOC”) revised the form it uses to collect demographic information on employees (the EEO-1) to include additional reporting requirements. Specifically, EEOC revised the EEO-1 form to require private-sector employers with over 100 employees to report information on their employees’ compensation and hours worked (referred to as Component 2). This change was controversial and frustrated many employers, who viewed the new requirements as a significant data collection burden without any meaningful benefit. As a result of this controversy, there has been speculation that the additional reporting requirements would be withdrawn, or the compliance date for Component 2 would be postponed.

Fortunately for employers, the Office of Management Budget (“OMB”) stepped in and suspended indefinitely the compliance date for the new requirements. On August 29, 2017, the Acting Chair of EEOC Victoria Lipnic issued a statement, providing that the OMB, through the Office of Information and Regulatory Affairs, was initiating a review and immediate stay of the effectiveness of the pay data collection aspects of the EEO-1 form that was revised in September 2016, in accordance with its authority under the Paperwork Reduction Act.

In its statement, EEOC Acting Chair Lipnic made clear that the previously approved EEO-1 form, which collects data on race, ethnicity and gender by occupational category, will remain in effect. Employers should plan to comply with the earlier approved EEO-1 by the previously set filing date of March 2018. For more information on how to comply with EEO-1 reporting obligations, go to EEOC’s website, which has instructions: https://www.eeoc.gov/employers/eeo1survey/2017survey.cfm.