Law Alert! COURT RULING REVIVES PAY DATA REPORTING REQUIREMENT


Employers are Required to Report 2018 Pay Data by September 30, 2019

A federal court in Washington, D.C. ordered the Equal Employment Opportunity Commission (EEOC) to reinstate a rule it issued in 2016 that requires mid-size and large employers to report pay data to the federal government. The rule, which was scheduled to go into effect March 31, 2018, was yanked by the Trump Administration. However, a federal court Judge has ruled that the Trump Administration’s failure to implement the Obama-era rule was an unlawful administrative action. The court’s decision has the EEOC scrambling to put infrastructure in place to collect the data. Likewise, employers must move quickly to analyze and gather the data to submit within the next 6 months. Under the reinstated rule, private employers and federal contractors and subcontractors with 100 or more employees must submit to the EEOC 2018 pay data based on sex, race and ethnicity. Pursuant to the court's order, these employers will also be required to submit pay data for either 2017 or 2019, a decision the EEOC must make by May 3, 2019. What Should Employers Do to Prepare? Determine if you are a company who must report pay data. Ensure the information you need to submit is readily available, or begin to analyze and gather the data. Conduct a privileged pay equity audit to prepare for the reporting of 2019 pay data.