On January 29, 2016, the Obama Administration proposed a change to EEOC reporting requirements. Currently, all employers with 100 or more workers, roughly 60,000 employers with 63 million employees, already complete the EEO-1 form on an annual basis, providing demographic information to the government about race, gender, and ethnicity, but the proposed change would require employers to complete a revised EEO-1 form that included salary and pay information.
Almost immediately, the business community objected, claiming that the additional information was unnecessary, useless, and a burden. The EEOC made revisions to the proposal, which included defining “pay” as the total W-2 compensation paid to an employee, since businesses already have to compile and report that figure, and issued the revised rule in September, 2016, while extending the compliance date from March 2017 to March 31, 2018.
Business interests, led by the U.S. Chamber of Commerce are pressing the Trump administration hard to revoke the rule, saying that there’s no merit in the requirement. Trump’s Director of the Office of Management now says the matter is under review.
This is despite a huge amount of data that would appear to indicate the opposite, that, in particular, there is significant overall pay discrimination based on race and gender. The difficulty is that while statistics show that women are paid roughly twenty percent less than men, those are aggregate statistics, and both sides dispute them for different reasons.
What I find interesting is the Chamber of Commerce statement that the data would be useless. It seems to me that the data could be incredibly useful. It would go a very long way to either establishing or rejecting the idea that gender and racial pay discrimination exists.
In earlier comments, some businesses objected to the use of W-2 total compensation in the report, claiming that “base pay” was more accurate. Equal Pay advocates countered by pointing out that bonuses and other additional compensation go far more often to white males, and that total compensation – the measure adopted in the final rule – was a more accurate indicator.
The Chamber of Commerce’s opposition, at least to me, smacks of trying to keep everyone in the dark about what’s happening in the pay area, especially since business has to make the basic report anyway. It’s similar to the idea that, if the government stops funding climate research, global warming will just go away… but then, the head in the sand attitude has always been a favorite of those who don’t want things to change.
NOTE: At court hearing last Friday [April 7th], a U.S. Department of Labor regional director announced that, in investigating Google, the DOL had “found systemic compensation disparities against women pretty much throughout the entire workforce.” Google, of course, vehemently denied the charges. This was the second Silicon Valley tech company that DOL had charged with such gender pay discrimination, the first being Oracle earlier this year.