Employers with over 100 employees will have to report 2017 and 2018 pay data by September 30, 2019.
The Equal Employment Opportunity Commission requires all employers with 100 or more employees, and federal contractors with 50 or more employees and contracts of $50,000 or more, to provide information about the makeup of their workforce. Form EEO-1 must be filed annually to identify employees by race, ethnicity and sex, in each employer location and job category (Component 1 data). The EEOC has revised the reporting requirements to add a disclosure of pay data (Component 2 data) for employers with over 100 employees.
The Equal Pay Act of 1963 requires that employers pay men and women in the same workplace equal pay for equal work. Even if the jobs for men and women are not identical, if they are substantially similar, they require equal pay. Job content, not job title, determines whether a position is substantially similar to another position. The new data which must be reported is intended to help the EEOC identify possible pay discrimination and to help employers maintain equal pay throughout their workforce.
Employers who must report pay data will have to provide W-2 compensation for employees by 12 pay bands. Employers will also have to collect the total number of hours worked by employees in each of the 12 pay bands.
The EEOC said that it expects to begin collecting EEO-1 Component 2 data for 2017/2018 in mid-July 2019.
Employers should begin gathering data and preparing for the new pay requirements by analyzing pay information, categorizing employees into appropriate pay groups, and reviewing salaries to determine if any potentially discriminatory payroll situations exist.
