Los Angeles partner Kate Gold was quoted in an Employee Benefits News article titled, “EEOC pay rules a new ‘burden’ for employers.”
The Equal Employment Opportunity Commission recently announced plans to require businesses to provide summary data about how much they pay their workers. This new proposed rule targets gender pay equality. However, there are rising concerns among employers who fear that compliance may cost time and other resources while doing little to solve the problems of unequal pay.
“It’s a good-news, bad-news situation for employers,” said Kate. “Most employers I work with generally support pay equity, so from that standpoint, it’s not bad news that new legislation and administrative action is shining a light on pay practices and closing the gender wage gap.”
“Many employers will see that in the ‘good news’ category,” she added.
Angst lies in other aspects of the proposed rule. “Because the EEO-1 form does not provide any context for explaining pay data, or lend itself to explaining pay disparities among broad job categories, such as ‘professionals,’ it’s a blunt instrument for measuring pay equity and could be easily misunderstood or misconstrued,” said Kate.
This revised EEO-1 form is not likely to go into effect until late 2017, giving employers time to plan to execute this new requirement.