Is Your Small Business Complying With New Pay Equity Laws?

It is 2019. So by now try to be conscious that you just can not discriminate based mostly on race or gender in relation to worker compensation. The gender pay hole particularly has been a hot-button subject currently, with everybody from Vice to Oracle to Disney going through (and settling) lawsuits based mostly on unequal pay for female and male staff. (It must also be famous that, particularly with extra nonbinary staff within the workforce, one of the best follow is to pay everybody with related expertise and doing related work the identical.)

So how do you, or the federal government, know that you just’re complying with pay fairness legal guidelines? One methodology is annual EEO-1 filings, necessary for sure firms and small companies. Here is what it is advisable to know.


Does each small enterprise have to submit an EEO-1 report? Maybe fortunately for you, no. Solely firms that meet one in every of the following criteria are required to report:

  • You could have 100 or extra staff
  • You could have lower than 100 staff however you might be owned, affiliated with or managed by an organization with greater than 100 staff total
  • You could have 50 or extra staff AND you will have a federal contract/subcontract value greater than $50,000


And what, precisely, must be reported? The info is used to forestall pay discrimination, and asks for data on staff’ race, gender, job class, and compensation. Most of that, except for race, needs to be simply ascertained by employers. As for race, the Equal Employment Opportunity Commission advises in opposition to winging it:

Self-identification is the popular methodology of figuring out the race and ethnic data essential for the EEO-1 report. Employers are required to supply staff the chance to make use of self-identification to finish the EEO-1 report. If an worker declines to self-identify, employment information or observer remark could also be used.


So, is the federal government planning to publicly disgrace you relating to your pay practices? Will they hand the information over to plaintiffs’ attorneys? Not fairly. The EEOC is prohibited from publicly releasing EEO-1 employment information. Nevertheless, that information can be utilized by the Division of Labor to implement civil rights claims.


You will discover instructions on filling out and filing EEO-1 reports on the EEOC web site. In the event you’re questioning the best way to adjust to pay fairness legal guidelines usually, chances are you’ll wish to keep away from asking about present or prior wages or wage histories when hiring. Girls and minorities are sometimes discriminated in opposition to in pay from the start of their employment, and utilizing this data as the premise of your wage supply could proceed pay inequities from candidates’ prior employers into your group or make it worse.

You can too be proactive in conducting quarterly pay analyses or audits, on the lookout for proof of pay gaps, particularly previous to common pay will increase or promotion opinions. Pleading ignorance will not be an excuse that will likely be accepted by authorities entities or staff.


The deadline for EEO-1 filings is September 30. So in the event you did not file and are anxious it is advisable to, or have questions on your submitting, contact an skilled employment lawyer right now.

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