The EEOC announced a court-approved deadline of September 30 for all employers of 100 or more employees to collect and report to the EEOC data on hours and wages for all job positions broken down by race, sex and ethnicity.
With this information, the government will be able to determine the aggregate income received by employees to ascertain if there is a basis for initiating pay bias lawsuits/complaints and investigating potential violations of equal pay laws. It is important to note that this data is not only reportable to the government. It could be sought by former employees claiming that they were paid unfairly based upon a protected characteristic. From that perspective, a proverbial Pandora’s Box may just have been opened.
Given the current legal environment arising out of the #MeToo movement, employers would be well advised to conduct self-audits ahead of their submissions to ascertain whether their payroll data creates a statistical basis for claiming bias in pay practices. If you require more information about the reporting requirements, you may visit the EEOC’s website or contact us below.
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