UPDATE: EEO-1 New Pay Data Reporting Requirement - STAYED

UPDATE: EEO-1 New Pay Data Reporting Requirement - STAYED

Client Alert

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Our HR Services Group combines a deep understanding of the HR marketplace and best practices with seamless access to quality legal resources. We serve companies navigating all facets of human resources management, systems, policy development and legal compliance. Whether clients require consulting, contract services, training and development programs, or strategic staffing assistance, our HR professionals have the experience to help meet their goals.

The HR Services Group is a team of senior-level certified HR professionals (non-lawyers), also with decades of combined experience, who perform discrete HR projects and/or ongoing HR counseling and support for firm clients, including HR systems assessment and development, compensation and pay equity analyses, salary surveys, benefit plan assessment and design, talent acquisition, management training, affirmative action program development, compliance/audit support, and support for EEO efforts and development of diversity and inclusion programs.

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The HR Services Group guides affirmative action program development and reporting (including EEO-1 and VETS-4212 reports), statistical analysis, self-audit monitoring support, and OFCCP audit support, teaming with our employment lawyers who bring affirmative action legal experience to ensure a unique complement of legal and HR proficiency for our clients at a highly competitive price point. Should an audit occur, our legal and HR affirmative action teams will jointly manage the audit process from the day the compliance review notice is received, through the many requests for information, possible on-site representation, and through closure, continually working to manage and minimize client risk at each step in the process. We are proud of our track record for successful closure of client audits.

The EEOC has announced a stay in the much-anticipated pay data reporting that was to be part of the new EEO-1 Report due by March 31, 2018 (previous reporting due by September 30 each year). See WilmerHale's August 24, 2017 client alert.

Yesterday, the Office of Management and Budget (OMB) informed Acting EEOC Chair Victoria Lipnic that it was declaring an “immediate stay on the effectiveness of the pay data collection aspects of the newly revised EEO-1 form” and commencing a review of the new pay data collection requirement under the Paperwork Reduction Act (PRA). OMB has also stated that employers will still be required to report using the new workforce snapshot period for 2017 (any payroll period of the employer's choice between October 1 and December 31, 2017), however, when reporting for 2017, employers should use the previously approved EEO-1 form which only requires headcounts by race/ethnicity and gender by EEO-1 job category.

This is great news for companies that file the EEO-1. As noted previously, the pay data reporting would have added a significant burden to the data collection and reporting activities, without—as many believe—generating meaningful pay equity data.

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