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Pay Equity Matters: Mind the Gap

In an announcement sure to please federal contractors, the OFCCP announced Friday that it would not use any of the pay data gathered by the EEOC in this year’s expanded collection efforts for enforcement purposes. The November 22 release is just the latest example of the federal government’s taking active steps to diminish the pay data collection requirements forced on the administration following a surprise court ruling in March.

A federal judge yesterday ordered the EEOC to continue its pay data collection efforts and complete its efforts into next year, ruling that an insufficient number of employers have submitted their revised EEO-1 reports. Although the agency tried to shut down the pay data collection process by pointing out that over 80% of eligible employers had turned in their 2017 and 2018 compensation information, the court said that more could be done and ordered the agency to keep at it and complete its work by January 31, 2020.

In a court filing yesterday, the EEOC suggested that employers have until September 30, 2019, to turn over pay data as part of their revised EEO-1 reporting obligations. It is uncertain yet as to whether the plaintiffs challenging the government’s actions will go along with this plan, and, more importantly, whether the federal court who resurrected the pay data reporting requirement will be on board with this suggested timeframe.

The 4th Circuit Court of Appeals just forced a public employer back into court to defend itself against a pay equity claim after a lower court had dismissed the lawsuit and cleared the employer from wrongdoing. In resurrecting the claim on behalf of three female employees, the appeals court created a more rigid standard of proof that will make it harder for employers to win pay equity claims and should incentivize businesses to examine their own compensation practices.

Tags: EEOC

A conciliation agreement released by the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) on October 4, 2017 revealed that State Street Corp. has agreed to pay $5 million to settle allegations that the company discriminated against more than 300 female executives by paying them less than their male counterparts. The settlement also resolves allegations by the OFCCP that State Street paid 15 black vice presidents less than white vice presidents.

Tags: OFCCP

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