EEOC Holds Public Hearing on Proposal to Collect Pay Data from W-2s

Mar 17 2016 - Reporting Requirements - Gail Cecchettini Whaley

WagesYesterday, the federal Equal Employment Opportunity Commission (EEOC) held a public hearing on its proposal to require large employers to report pay data to the agency on the EEO-1 report, including aggregate information from employees’ Form W-2.

As previously reported, the EEOC is seeking to collect pay data from employers with more than 100 employees to assist the agency in identifying pay disparities that warrant investigation.

At the hearing, EEOC Chair Jenny R. Yang argued that “The lack of [pay] data has been a significant barrier to tackling unfair pay. This proposal is intended to provide the data that is needed to better understand where potential pay problems exist, so that we can strengthen our enforcement efforts and employers can work proactively to address them.”

Fifteen witnesses spoke at the hearing representing employers, employees and academics.

Proposal                           

Under the proposal:

  • Employers, including federal contractors, with 100 or more employees would submit pay data beginning September 30, 2017.
  • Employers would identify employees’ total W-2 earnings for a 12-month period and would provide aggregate information on the EEO-1.
  • Employers would not provide individual employee information but would instead provide information by job category and demographic group using twelve different “pay bands” — or salary ranges.
  • Federal contractors with 50-99 employees would continue to report race, sex and ethnicity data but would not report pay data.

Example from the EEOC: An employer would report on the EEO-1 that it employs ten African American men who are Craft Workers in the second pay band ($19,240 – $24,439).

Comment Period:                             

The comment period on the proposed changes to the EEO-1 form is still open. Comments must be submitted by April 1, 2016 and can be submitted online here. Follow the instructions on the website for submitting comments.

Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content

CalChamber members can read more about EEO Reporting Requirements in the HR Library. Not a member? See how HRCalifornia can help you.

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