“ISSUE: Pay Equity and the EEO-1 Report”
05/30/17 By Pamela M. Ploor
It is still too early to tell if the Trump Administration is going to repeal a report that will bolster efforts to bring pay equity claims. Much of the legislative activity on pay equity is at the state and local level. Shareholder proposals on pay transparency and pay equity at public companies are becoming more common.
The Obama administration modified the EEO-1 Report so that beginning in 2018, an employer of at least 100 employees must report employees' pay and hours worked as part of its report filing. The report is due on March 31, 2018. If none of the EEOC Commissioners resigns early, President Trump will control a majority of EEOC Commissioners in July 2017. However, that timing would cut it close for employers that need to update software and systems to allow them to generate the EEO-1 reports by March 2018.
IMPACT: Employers should plan to analyze the compensation of women versus men because pay equity will only continue to grow as a litigation and public relations risk. Other key topics to evaluate include considering questions to applicants about pay history as some state and local laws limit such questions; and assessing risk profiles for shareholder or other demands related to pay equity. Employers also should communicate with their software vendors on patches to prepare the updated EEO-1 and protect any compensation report as confidential and subject to attorney-client privilege so an employer does not have to turn it over to government agencies or in litigation. Privilege also allows an employer to more freely assess potential independent variables impacting pay.
For more information:contact Pamela Ploor at [email protected] or (414) 277-5661.