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EEOC Proposal Seeks to Expand Pay Discrimination Enforcement by Requiring More Data from Employers

Under new rules proposed by the U.S. Equal Employment Opportunity Commission ("EEOC"), companies with 100 employees or more would be required to report payroll data on all workers to the federal government along with the demographic data that they now must submit.

The proposed rule also would apply to federal contractors with 100 employees or more. Currently, federal contractors with 50 or more employees have been required to produce compensation data to the U.S. Department of Labor’s Office of Federal Contract Compliance Programs ("OFCCP") during audits by that agency. The proposed rule would apply the payroll data requirement to contractors with 100 or more employees, even when those contractors are not being audited.

The agencies’ goal is to identify and address instances in which men and women and persons of different races and ethnicities earn different wages for the same work. The proposal would be implemented through a revised Employer Information Report ("EEO-1") Form, which now requires employers to disclose to the EEOC data regarding employees’ gender, race, and ethnicity by job category.

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