EEOC to Require Businesses to Unveil Pay Data

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By Chris Opfer

The Equal Employment Opportunity Commission Jan. 29 announced a new proposal to fight wage discrimination by requiring businesses to provide summary data about how much they pay their workers.

The EEOC rolled out a proposed rule that would obligate businesses with 100 or more employees to annually turn over pay data by gender, race and ethnicity. The proposal wouldn't force employers to divulge specific pay rate information for individual employees, but instead report pay bands across 10 different job categories.

EEOC Chair Jenny Yang told reporters Jan. 28 that the commission will work in partnership with the Labor Department to collect and analyze the data. She said the information will be used to focus wage discrimination investigations, identify existing pay disparities, and help employers evaluate their own practices.

“Too many hard-working Americans are still not paid equally for equal work,” Yang said. “Our experience and the research demonstrates that, even when people perform the same work and have the same education, qualifications, and experience, significant gaps in earnings persist.”