Federal Judge Reinstates EEO-1 Pay Data Reporting Rule
Topics: Court Decisions
Employers with 100 or more employees, and federal contractors with 50 or more employees, historically have been required to file annual Employer Information Reports (“EEO-1 Reports”) disclosing their number of employees by job category, race, and sex. In 2016, the Obama administration’s EEOC expanded the required EEO-1 reporting data to include pay and hours worked data. The intention of this expanded reporting requirement was to help the agency identify discriminatory pay gaps. Under this expanded rule, covered employers would have been required to submit the pay data by March 31, 2018. However, in 2017, the Trump administration EEOC abandoned the expanded EEO-1 reporting requirement in favor of simply continuing existing EEO-1 reporting requirements. Advocacy groups, including the National Women’s Law Center, then sued the EEOC and OMB in an effort to reinstate the pay data reporting rule. In a surprising move, a federal district court judge in Washington, D.C. issued a ruling last night agreeing with the National Women’s Law Center that the government’s elimination of the pay data reporting rule was unlawful. In short, the judge held that the government had to have a “reasonable explanation” for changing course on the rule and that they had failed to present one. The judge’s remedy was to vacate the government’s action in rescinding the rule, thereby effectively reinstating the EEO-1 pay data reporting requirement. Employers would have had only until March 31, 2019 to file their expanded annual EEO-1 reports, but the deadline previously was extended to May 31, 2019 as a result of the government shutdown. It is unclear whether or not employers will have to comply by May 31, 2019. The government is expected to appeal the district court’s ruling and seek a stay of the ruling pending appeal. The EEOC has not yet issued a statement or direction for employers on the effect of the ruling. Stay tuned.