National Association of Government Contractors

EEO-1 Reporting Requirement Won't Take Effect

Late last month, the Office of Management and Budget (OMB) informed the Equal Employment Opportunity Commission (EEOC) that it planned to suspend implementation of the EEO-1 form as revised on September 29, 2016.

Under the revised rule from 2016, covered employers would have had to include in these reports information on compensation and hours worked, also based on race, gender and ethnicity. This would have facilitated the EEOC's investigation of employers' compensation practices.

However, OMB viewed these additional reporting requirements as lacking practical utility, and as unreasonably burdensome and deficient due to the EEOC's failure to address privacy and confidentiality issues.

The Obama administration had called for the new standards to demonstrate commitment to closing the gender wage gap. The new standards would have affected 61,000 American companies with more than 100 workers and federal contractors with more than 50 workers.

Some speculate that under the new standards some employers would have been required to submit 20 times as much data to the agency as previously required.

However, EEO-1 reporting will continue to be required consistent with the previous regulations.

Enactment of the new requirements, had been delayed until March 2018,. Now, they have been abandoned entirely. The scaling back of the EEO-1 Report to previous requirements is welcome news for many employers.

The EEOC enforces the federal Equal Pay Act of 1963 and Title VII of the 1964 Civil Rights Act, among other laws. With regard to this announcement, Acting Chair of the EEOC, Victoria Lipnic, said:

"Going forward, we at the EEOC will review the order and our options. I do hope that this decision will prompt a discussion of other more effective solutions to encourage employers to review their compensation practices to ensure equal pay and close the wage gap. I stand ready to work with Congress, federal agencies, and all stakeholders to achieve that goal."

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