Dealing with the EEOC can be tricky for many businesses, especially as the agency's regulations are constantly updated and changed. While not yet the law of the land, it's important to be aware of one proposed rule that the EEOC is now considering. A recently proposed change to the Employer Information Report (EEO-1) would require all employers to release salary information to the EEOC as part of a federal effort to reduce the pay disparity between men and women.
New Requirement for an Old Requirement
National media has well documented the pay gap between men and women in recent years. On average, women make 78 cents for every $1 that men make. That gap extends across all professions.
If the rule change goes into effect, it shouldn't be a drastic departure from the information that the EEOC already collects. Most employers should already have at least a passing familiarity with EEO-1 already. As is, the regulation requires private sector employers to provide the government with information about the race, ethnicity and sex of employees. If the new rule passes, employers will also have to provide information about pay ranges and hours worked when they submit their 2017 EEO-1 report.
It's important to note that this information would not require any further action on the part of employers. Businesses will not be forced to increase wages for certain employees if the EEOC finds a pay gap exists, nor will this information be grounds for employees to file complaints with the EEOC. While the federal government will have access to this information, specific salary information from each company will not be released to the public.
Instead, the EEOC and the Office of Federal Contract Compliance Programs of the Department of Labor would use this information to create reports that will assist businesses in analyzing pay disparity on their own. Any sort of changes in wages will be completely voluntary, however, companies will be mandated to provide the initial information to the EEOC.
Looking For An Employment Defense Attorney?
Businesses need to be exceedingly careful in dealing with EEOC requirements, but legal counsel can help. Frasier, Frasier & Hickman represents businesses facing lawsuits from current or former employees. Contact our Tulsa office today to schedule a consultation to discuss your case, 918-779-3658.