In an effort to combat pay disparities across a number of industries, the federal government is preparing to move forward with new reporting requirements surrounding employee pay and demographics. These rules, originally proposed by the Equal Employment Opportunity Commission (EEOC), have significant implications for the way businesses filing EEO-1 forms have to report employment demographics and pay data, so it's important to prepare for the March 2018 filing deadline immediately.
"Pay equity laws have been on the books for decades, and employers have had reporting requirements for decades," Ellen Feeney, vice president for counsel for ADP, told Business News Daily. "But now businesses are starting to pay more attention, because last year the EEOC issued new federal requirements for government reporting."
Under the new rules, employers with 100 employees or more are required to submit pay data based on workers' W-2 earnings. The rules include part-time and seasonal workers. Pay data collection would be required in addition to the current EEO-1 form requirements, which include reporting on number of employees by job category, race, ethnicity and sex. Federal contractors with 50 to 99 employees are exempt from the new pay data rule, but would be required to continue submitting the demographic and job category reports on the EEO-1.
"Employers have to prepare to report this additional data (by March 2018)," Feeney said. "It's important they start to focus on this now, because it requires data from multiple systems. The new requirements will increase the number of potential entries from 140 data elements to 3,360, which increases the complexity of the reporting process and requires employers to build that into their payroll infrastructure."
According to Feeney, the changes to the updated requirements, which were approved by the Office of Management and Budget (OMB) in July 2016, could potentially be revisited in light of the change in administration following the 2016 presidential election.
"There is a possibility that the EEOC, under the Trump Administration, could revisit these rules," Feeney said. "But even if the requirement is revisited and modified for easier compliance, equal pay will still remain a hot topic."