The Obama administration is stepping up federal efforts to make corporate pay practices more transparent and spotlight discriminatory pay disparities.
The EEOC, on Jan. 29, announced a proposed revision to the Employer Information Report (EEO-1) that would require all employers with more than 100 employees to report what they pay their workers by race, gender and ethnicity.
One goal of the initiative: Closing the gender pay gap. Announcing the reporting requirement on the seventh anniversary of the signing of the Lilly Ledbetter Fair Pay Act, President Obama said, “Women are not getting the fair shot that we believe every single American deserves.”
An EEOC statement said the new rule would aid anti-discrimination enforcement efforts. “We will be using the information that we’re collecting as one piece of information that can inform our investigations,” said EEOC Chair Jenny Yang.
EEO-1 data, submitted by employers each fall, provides the federal government with workforce profiles from private-sector employers by race, ethnicity, sex and job category. The proposal would add aggregate data on pay ranges and hours worked, beginning with the September 2017 report. All federal contractors would be required to comply.
The proposed changes are available for inspection on the Federal Register website. Public comments will be accepted until April 1.
The Department of Labor’s Office of Federal Contract Compliance Programs plans to use pay information to beef up anti-discrimination enforcement efforts aimed at government contractors.
The EEOC plans to compile and publish aggregated data that will help employers analyze their own pay practices to facilitate voluntary compliance. It will also use pay data to assess complaints of discrimination, focus agency investigations and identify existing pay disparities that may warrant further examination.