Saturday, January 30, 2016

New Rules on Pay Discrimination

In a highly controversial move, the President announced this week proposed new rules requiring private employers with over 100 employees to provide additional data to the EEOC on worker salary.  The move could help provide more transparency on pay issues, thus reducing the likelihood of pay discrimination.  The New York Times has a great summary of the issue here.  The EEOC has also issued a press release on the rules, which states that:

"This proposal would add aggregate data on pay ranges and hours worked to the information collected, beginning with the September 2017 report. Proposed changes are available for inspection on the Federal Register website and will be officially published in the Federal Register on February 1, 2016. Members of the public have 60 days from that date April 1, 2016, to submit comments. . . The new pay data would provide EEOC and the Office of Federal Contract Compliance Programs (OFCCP) of the Department of Labor with insight into pay disparities across industries and occupations and strengthen federal efforts to combat discrimination. This pay data would allow EEOC to compile and publish aggregated data that will help employers in conducting their own analysis of their pay practices to facilitate voluntary compliance. The agencies would use this pay data to assess complaints of discrimination, focus agency investigations, and identify existing pay disparities that may warrant further examination."

We will certainly follow this proposed rule, which could dramatically impact the field of pay discrimination.

-Joe Seiner

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