Pay Day Reporting: Federal & State Requirements!

Larger employers (100+ employees) have long been required to file annual Employer Information Reports (known as EEO-1 reports) with the federal government, disclosing the number of their employees by job category, race, sex, and ethnicity.  Last year, the EEOC sought to substantially expand the information required to be disclosed to include pay data and hours worked data.  The stated purpose of requiring this information was to aid the EEOC in identifying discriminatory pay practices.  The expanded, revised EEO-1 report was due to be submitted by March 31, 2018.  Not anymore.  Last week, the Office of Management and Budget (OMB) announced that it was issuing an immediate stay of the revised EEO-1 form.  In doing so, the Office explained, “Among other things, OMB is concerned that some aspects of the revised collection of information lack practical utility, are unnecessarily burdensome, and do not adequately address privacy and confidentiality issues.”   So, for now, employers are relieved of the obligation of complying with the pay data reporting requirements called for by last year’s revised EEO-1 report form.  Keep in mind, this does not change the former requirements that covered employers must file EEO-1 reports using the old forms.

Now the bad news for California employers. There is pending legislation (AB 1209) that would require employers with more than 500 employees in California to collect (beginning July 2019) and report to the Secretary of State (beginning July 2020) the following information concerning gender pay differentials:

(A) The difference between the mean salary of male exempt employees and female exempt employees, by each job classification or title. (B) The difference between the median salary of male exempt employees and female exempt employees, by each job classification or title. (C) The difference between the mean compensation of male board members and female board members. (D) The difference between the median compensation of male board members and female board members. (E) The number of employees used for the determination of subparagraphs (A) and (B).

The Secretary of State’s Office would then be required to publish this information on a website available to the public.  This bill has already passed the assembly and is pending before the state Senate.  I will keep you posted on this bill, and others, as the last day (September 15th) for the Legislature to pass bills approaches.

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