Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: February 4, 2016
The Firm
201-896-4100 info@sh-law.comAs a way to combat wage discrimination, the EEOC is specifically proposing to revise the Employer Information Report (EEO-1) to include collecting pay data from employers, including federal contractors, with more than 100 employees. President Barak Obama announced the proposal on January 29, 2016 in conjunction with the White House commemoration of the seventh anniversary of the Lilly Ledbetter Fair Pay Act.
Currently, the federal government uses EEO-1 reports to collect race, ethnicity, sex, and job category data from private employers. This proposal would add aggregate data on pay ranges and hours worked to the information collected. According to the EEOC, the new pay data would provide the agency with insight into pay disparities across industries and occupations. It could then use the information to evaluate employment discrimination complaints, identify investigation targets, and detect pay disparities trends that may warrant additional study.
“More than 50 years after pay discrimination became illegal it remains a persistent problem for too many Americans,” EEOC Chairwoman Jenny R. Yang said in a press statement. “This information will assist employers in evaluating their pay practices to prevent pay discrimination and strengthen enforcement of our federal anti-discrimination laws.”
In response to potential pushback from employers, the EEOC proposal highlights the revised report will collect salary data from employees’ W-2 earnings and hours worked, which EEO-1 filers already maintain in the ordinary course of business. Of course, compiling and submitting the data will still involve some administrative burden.
The EEOC’s proposed changes have been published on the Federal Register website, and the public will have 60 days from that date April 1, 2016, to submit comments. Once finalized, the proposed changes would take effect with the September 2017 report.
Once the EEOC has the pay data in hand, enforcement actions are sure to follow. In the meantime, New York and New Jersey employers are advised to review their records to evaluate whether pay disparities arise out of legitimate, non-discriminatory reasons. Failure to engage in such analysis could lead to lawsuits and costly liability.
Employer should also consider submitting comments to the EEOC to express their legitimate concerns. Raw data that appears to reveal possible disparities does not, without more, provide necessary inputs for a nuanced and fair review of those numbers. In the absence of additional questions and a fair attempt to look behind the data, employers may face unfair and expensive governmental onslaughts. Based upon the EEOC’s recent enforcement actions that have, at times, been criticized by the courts, concerns over any rush to judgment by the EEOC and the unfairness of facile reviews and conclusions should be vigorously expressed.
Related Articles:
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
As a way to combat wage discrimination, the EEOC is specifically proposing to revise the Employer Information Report (EEO-1) to include collecting pay data from employers, including federal contractors, with more than 100 employees. President Barak Obama announced the proposal on January 29, 2016 in conjunction with the White House commemoration of the seventh anniversary of the Lilly Ledbetter Fair Pay Act.
Currently, the federal government uses EEO-1 reports to collect race, ethnicity, sex, and job category data from private employers. This proposal would add aggregate data on pay ranges and hours worked to the information collected. According to the EEOC, the new pay data would provide the agency with insight into pay disparities across industries and occupations. It could then use the information to evaluate employment discrimination complaints, identify investigation targets, and detect pay disparities trends that may warrant additional study.
“More than 50 years after pay discrimination became illegal it remains a persistent problem for too many Americans,” EEOC Chairwoman Jenny R. Yang said in a press statement. “This information will assist employers in evaluating their pay practices to prevent pay discrimination and strengthen enforcement of our federal anti-discrimination laws.”
In response to potential pushback from employers, the EEOC proposal highlights the revised report will collect salary data from employees’ W-2 earnings and hours worked, which EEO-1 filers already maintain in the ordinary course of business. Of course, compiling and submitting the data will still involve some administrative burden.
The EEOC’s proposed changes have been published on the Federal Register website, and the public will have 60 days from that date April 1, 2016, to submit comments. Once finalized, the proposed changes would take effect with the September 2017 report.
Once the EEOC has the pay data in hand, enforcement actions are sure to follow. In the meantime, New York and New Jersey employers are advised to review their records to evaluate whether pay disparities arise out of legitimate, non-discriminatory reasons. Failure to engage in such analysis could lead to lawsuits and costly liability.
Employer should also consider submitting comments to the EEOC to express their legitimate concerns. Raw data that appears to reveal possible disparities does not, without more, provide necessary inputs for a nuanced and fair review of those numbers. In the absence of additional questions and a fair attempt to look behind the data, employers may face unfair and expensive governmental onslaughts. Based upon the EEOC’s recent enforcement actions that have, at times, been criticized by the courts, concerns over any rush to judgment by the EEOC and the unfairness of facile reviews and conclusions should be vigorously expressed.
Related Articles:
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!