Tag Archives: equal pay

EEOC Proposes to Add Pay Data to EEO-1 Reporting Form

As part of itsgavel over money istock role enforcing antidiscrimination laws, the Equal Employment Opportunity Commission (EEOC) gathers information about workplace demographics in the United States. Employers with 100 or more employees are required to submit an annual report, called the EEO-1 report, providing information about the race, ethnicity, and gender of the company’s employees in certain job categories. At the end of last month, the EEOC announced a proposal to add pay data to the EEO-1 report, in an effort to enforce equal pay laws.

Although wage discrimination based on gender, ethnicity, and race has been outlawed for several decades, the United States still has a significant pay gap. Women continue to make around three-fourths or less of what men make in the same position. The pay gap is even wider for female employees of African American or Latino descent.

Enforcing equal pay has presented somewhat of a challenge because it’s easy for this type of discrimination to go unnoticed. Employees typically aren’t privy to what their coworkers are earning, and up until now, employers haven’t been required to report that data to any state agencies. The EEOC expects that requiring regular reporting of pay data will help regulate employers and enforce antidiscrimination laws. And, it will provide employers with an opportunity to monitor their pay practices and correct any discrepancies.

If the EEOC’s proposed change is approved, employers that are required to submit an EEO-1 report will need to include information on employees’ wages and work hours. The EEOC will be accepting comments on the proposed rule until April 1, 2016. If the rule passes, employers will need to comply with the new reporting requirement beginning in 2017.

California Passes New Equal Pay Law

The gengavel over money istockder gap is alive and well in California. According to a 2014 study by the National Women’s Law Center, a woman working full time in California still earns only 84 cents for every dollar that a man makes. For women of color, the gap is even more significant. For example, a Latina woman earns only 44 cents for every dollar that a white man makes.

On October 6, 2015, Governor Jerry Brown signed the California Fair Pay Act into law. The new law, which goes into effect on January 1, 2016, expands on California’s Equal Pay Act of 1949 and makes it easier for women to challenge discriminatory pay practices.

California employers have long been required pay to men and women equally. However, in the past, this rule applied only when the man and woman performed “equal work” in the same location. The new law relaxes this requirement, requiring equal pay for “substantially similar” work, even if the employees work in different offices or locations. The new law also encourages an open discourse about wages: Employers are not allowed to prohibit employees from discussing their wages or retaliate against them for doing so.

Another significant change is that the law shifts the burden of proof to the employer. Once an employee challenges an unequal pay practice, the employer must prove that the difference in pay is due to a legitimate factor other than gender—such as seniority, qualifications, or the quantity or quality of work. If the employer isn’t able to meet its burden, the employee can recover the difference in wages plus interest, an equal amount in liquidated damages, and attorneys’ fees and cost.