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EEOC May Halt Nationwide Pay Data Collection Efforts

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Recently, the U.S. Equal Employment Opportunity Commission’s acting chairwoman, Victoria Lipnic, indicated that the agency may cease its efforts for nationwide pay data collection designed to eliminate the gender pay gap. The agency’s measure would have required most private employers with 100 or more employees to submit an annual EEO-1 form reporting pay for their workers, with data categorized by gender, race, ethnicity, and job type. “Once we have a complement of new commissioners what will happen with some version—or no version—of EEO-1 pay data collection is something we’ll spend a lot of time on,” said Lipnic. While Lipnic’s comments may signal a lack of federal action on this issue, some advocates believe that states will propose pay data laws in lieu of the EEOC’s collection.  (California, we’re looking at you.)

This development comes in the midst of recent changes in state and local legislation referred to as the “no-ask” laws—laws designed to narrow the gender pay gap by prohibiting employers from asking job applicants about their salary history information. It is uncertain how the EEOC will proceed, but given the current trend, employers should be prepared to revamp their policies and procedures to comply with the “no-ask” laws and the possible local pay data laws that may soon make their debut.