New Pay Equity Disclosure Rule Stayed by Office of Management and Budget
Large employers will not have to report employee pay by gender and race in their EEO-1 forms after all, thanks to a recent deregulatory stay initiated by the Office of Management and Budget (OMB) and the Equal Employment Opportunity Commission (EEOC). The stay halted a 2016 revision to the EEO-1 form that would have required covered employers to provide employee pay data beginning in March 2018. The OMB, after consulting with the EEOC, declared that some aspects of such data collection “lack practical utility, are unnecessarily burdensome, and do not adequately address privacy and confidentiality issues,” according to the August 29 OMB memo initiating the stay. Form EEO-1, which, with some exceptions, is required of companies with 100 or more employees and federal contractors with 50 or more employees, will still require employers to report data on race, ethnicity and gender by occupational category.
The stay on Form EEO-1 is one of several deregulatory moves stemming from the EEOC’s own Regulatory Reform Task Force, which parallels a still broader initiative at the OMB. Based on the Executive Office Review Count posted on the OMB’s website, 161 rules from federal agencies have been reviewed so far this year. Of these, 10 rules have been left unchanged, 33 have been withdrawn and the remaining 118 have been revised.