October 14, 2016
The U.S. Equal Employment Opportunity Commission (EEOC) announced that some employers will be required to submit data regarding employees’ pay, beginning March 31, 2018. Smaller businesses may not be affected by these new requirements, as they are generally for employers with 50 or more employees.
“Collecting pay data is a significant step forward in addressing discriminatory pay practices. This information will assist employers in evaluating their pay practices to prevent pay discrimination and strengthen enforcement of our federal antidiscrimination laws,” said EEOC Chair Jenny R. Yang.
Here are the specifics:
- Employers with fewer than 100 employees will not be subject to the new reporting requirements
- Federal contractors and subcontractors with 50-99 employees will not report summary pay data, but they will continue to report employees by job category as well as by sex, ethnicity, and race as they do now.
- Federal contractors and subcontractors with fewer than 50 employees will not be subject to the new reporting requirements
- Private employers including federal contractors and subcontractors with 100 or more employees will report summary pay data
The EEOC tells employers that they should NOT disclose data regarding individual pay or salaries or any personally identifiable information. In addition, the EEOC ensures employers that their privacy and confidentiality will be protected; only large-scale, aggregated data will be published.
As always, contact our CPAs with any questions. We are happy to assist with any concerns you have about your business.