White House Suspends Pay Data Portion of EEO-1

Employers who were required to file pay and demographic data as part of a revised EEO-1 have been given a reprieve. The EEOC, under direction by the White House Office of Management and Budget, has suspended indefinitely the requirement to file the pay data portion.

Sometimes referred to as “Component 2,” the pay data was ordered a year ago by the EEOC as part of a government effort to address pay equality issues by race, ethnicity and gender. Most private employers with 100 or more employees and certain federal contractors were to report W-2 information and hours worked for all employees by race, ethnicity and sex within 12 pay ranges.

In addition, the EEOC changed the data collection period for reporting to Oct. 1 – Dec. 31, and moved the filing deadline for 2017 from the end of September to March 31, 2018.

The pay requirement was opposed by business groups as well as SHRM. They objected to the burden collecting and organizing that much information would place on HR and finance staffs, as well as raising the concern that relying on wage data would provide an incomplete picture.

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Late yesterday, EEOC Acting Chair Victoria Lipnic announced the OMB ordered stay, pending its review of the effectiveness of the pay data collection.

While employers appear to be relieved for now from collecting and reporting pay data, they are still obliged to report the same workforce demographic data as in previous years. Employers have until the end of March 2018 to file their EEO-1.

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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