Starting March 31, 2018, employers with more than 100 employees and federal contractors with more than 50 employees must provide employee pay data and hours worked on their EEO-1 filings. The EEO-1 is an annual report providing the Equal Employment Opportunity Commission and the Department of Labor information about an employer’s workforce diversity.
In addition to the information presently provided on the EEO-1, covered employers will have to submit data about employees’ pay (W-2 compensation), distributed among 10 job categories. The report does not require individual salary or other individually identifiable information.
The EEOC states that the goal of the new reporting is to help employer review their pay practices and to address complaints of discrimination.
Employers subject to reporting will have to prepare for the new requirements by determining how to gather required pay information, breaking employees into appropriate pay groups and reviewing salaries to determine potential discriminatory pay scales.