EEO-1 Pay Data Reporting Rule Reinstated by Judge

In the past, employers with 100 or more employees and federal contractors with 50 or more employees were required to file annual Employer Information Reports, also known as “EEO-1 Reports.” These reports disclose the number of employees at the company based on job category, race, and sex.

Under the Obama administration, the EEOC expanded the required EEO-1 reporting data to include pay and hours worked. The administration said the purpose of the expansion was to help the agency identify discriminatory pay gaps. Employers covered under the rule would have been forced to submit the pay data by March 31, 2018.

However, the EEOC under the Trump administration eliminated the reporting requirement and opted to continue using existing EEO-1 reporting requirements. Advocacy groups quickly sued the EEOC and OMB in order to try to reinstate the pay data reporting rule.

Recently, a federal district court judge in Washington, D.C. agreed with the advocacy groups that the government’s elimination of the pay data reporting rule was unlawful. According to the judge, the government needed to have a “reasonable explanation” for changing course on the rule but failed to present one. The judge vacated the government’s action to rescind the rule, effectively reinstating the EEO-1 pay data reporting requirement.

Although employers initially had until March 31, 2019, to file their expanded annual EEO-1 reports, the deadline was extended to May 31, 2019, following the government shutdown. The Trump administration is expected to appeal the district court’s ruling.

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