On June 11, 2019, Alabama’s governor, Kay Ivey, signed equal pay legislation (the “Act”), which goes into effect on September 1, 2019. Alabama now joins a growing number of states, including California, Colorado, Maryland, Massachusetts, and New Jersey, with newly enacted equal pay laws.
Maine and Cincinnati have joined other jurisdictions, such as New York City, California, Connecticut, Delaware, Massachusetts and Oregon, that prohibit employers from making salary history inquiries of potential employees in an effort to stop the perpetuation of wage gaps from job to job. The newly enacted legislation for Maine and Cincinnati is discussed in turn below.
As we previously reported, the Equal Employment Opportunity Commission (EEOC) now requires employers to disclose equal pay data on its Employer Information Report (EEO-1). The equal pay data, otherwise known as “Component 2” of the EEO-1, has been the subject of ongoing litigation. Most recently, the EEOC requested court approval to extend the deadline for employers to report Component 2 data until September 30, 2019—later than the deadline for other EEO-1 data, which is due May 31, 2019. Several organizations supporting equal pay initiatives had argued that the agency should collect the data by May 31, but the agency told the court that the May 31 deadline was not feasible.
The Equal Employment Opportunity Commission’s (EEOC) revised Employer Information Report (EEO-1) is now open via the EEOC’s online portal. As we previously reported, the revised EEO-1 now requires employers to aggregate W-2 wages and hours worked by job category, race, sex, and ethnicity. The new requirements were stayed in 2017, but a federal judge lifted that stay on March 4, 2019.
In a new filing on April 3, 2019, the EEOC requested court approval to extend the deadline for reporting pay data until September 30, 2019—later than the current EEO-1 deadline of May 31, 2019. In making its request, the EEOC noted that it needs additional time “in order to accommodate the significant practical challenges” related to collecting the pay information. The agency support the request with an affidavit from its recently appointed Chief Data Officer, Samuel Christopher Haffer.
Judge Tanya S. Chutkan is expected to rule on the agency’s request in the coming weeks. Subscribe to LaborSphere for updates.
On March 4, 2019, the U.S. District Court for the District of Columbia issued an order lifting the stay on the EEO-1 pay data reporting requirements, leaving employers uncertain about their obligations.
As we previously discussed, for the last 50 years, large employers with 100 or more employees, and federal contractors with 50 or more employees, must submit annual Employer Information Reports (EEO-1) to the Equal Employment Opportunity Commission (EEOC), which identifies the number of employees working for the company by job category based on race, sex and ethnicity.
*Originally published by CalCPA in the January/February 2019 issue of California CPA — the original article can be found here.
As the #MeToo movement gained momentum to right the wrongs of sexual harassment alleged against Hollywood, business and politicians, so too has the California Legislature responded by declaring, in essence, #TimesUp.
Of the nearly 600 bills introduced in 2018 that mention “employer,” compared to 304 bills in 2017) 455 mentioned “sexual harassment,” (compared to 347 the prior year). While most of those bills did not pass, and of the ones that did, Gov. Brown did not sign several into law, many of the new laws will have significant impact on our state.