Benefits and Compensation

Steps and Timeline for EEOC Collection of Employer Compensation Data

As we discussed yesterday, part of the federal government’s plan to achieve pay equality for men and women involves the collection of compensation data from federal contractors.

Today, more on the Equal Employment Opportunity Commission’s (EEOC) current activities in this area, courtesy of Attorney Leslie Silverman of the Washington, D.C., law firm Fortney & Scott, LLC.

The EEOC has hired a consultant to conduct an independent pay pilot study and assist with nearly every facet of the project.

According to the terms of the solicitation:

  • The EEOC plans to revise its existing EEO-1, EEO-4, and EEO-5 reports to collect summary pay data from employers.
  • The agency is pursuing the National Academy of Sciences’ (NAS) recommendation that it collect data on "rate of pay" but has asked the consultant to conduct a detailed statistical analysis and recommend which test it should use when evaluating pay disparities. Once the statistical analysis is complete, the consultant will develop the model for collecting compensation data and obtain EEOC feedback before conducting the pilot.
  • The EEOC will provide the consultant with simulated compensation data to run a pilot that will also incorporate the consultant’s recommended statistical measures for pay disparity tests in five EEO-1 industries.
  • The consultant will provide the EEOC with an estimate of the burden and the processing cost to the agency and respondents for each of the revised EEO surveys.

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Next Steps?

This multiphased study may take as long as 18 months to complete. Since the EEOC will need to undergo a rulemaking before requiring employers to provide compensation information as part of its annual EEO survey, it will be a number of years before employers will need to provide summary compensation data to the EEOC.
If you are subject to EEOC’s future compensation collection programs—and even if you’re not!—now is a great time to ensure that your compensation practices and pay differences are both lawful and defensible.

Wage and hour compliance is essential to prevent costly legal entanglements. Even the most savvy practitioners get tripped up, and FLSA’s complex requirements can easily land you and your company on the wrong side of a lawsuit or a Department of Labor (DOL) investigation.

Fortunately, there’s help—Wage & Hour Compliance: Practical Solutions for HR provides you with detailed guidance on how to comply with the FLSA, and it takes you through the most complicated wage and hour issues that HR practitioners encounter.

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Wage & Hour Compliance: Practical Solutions for HR features:

  • Real-world examples of wage and hour challenges and how to solve them;
  • Multiple quizzes, so you can see where you need to review more carefully;
  • An overtime exemption audit checklist, so you never make the wrong call;
  • State-specific charts, for comparing your multistate obligations;
  • Sample policies, easily modified to fit your specific preferences; and
  • A quarterly newsletter, Wage & Hour Compliance Bulletin, to keep you aware of the latest developments in the law and why they matter to you.

Why are aggressive attorneys so eager to file claims on behalf of employees? Because there’s so much money to be made! Some examples are:

  • $4.75 million—Hospital in Thousand Oaks, California, settles a wage and hour lawsuit over miscalculated overtime pay and failing to compensate workers for missed meal and rest periods.
  • $1.15 million—Las Vegas construction company to pay back wages to 1,060 current and former employees.
  • $976,327—New Mexico aerospace company settles with 900 employees who were routinely required to work through lunch breaks without compensation.
  • $340,400—New Jersey convenience store agrees to pay back wages and damages for violations of overtime and recordkeeping.
  • $84,541—New York physical therapist agrees to pay 22 employees for minimum wage violations.
  • $30,000—Texas chain of four gas stations agrees to pay their six hourly employees, again, for recordkeeping and overtime violations.

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