Q. What is the status of the EEOC’s requirement that we submit pay data with our annual EEO-1 Form? Also, have there been any updates on the lawsuit blocking the DOL’s rule raising the salary basis for certain non-exempt employees?
A. As we reported previously, the EEOC, as part of its effort to detect and remedy pay discrimination, amended its EEO-1 Form to require that employers with 100 or more employees submit detailed pay data on their workforce. On August 29, 2017, the OMB sent a memorandum to the EEOC, staying implementation of this requirement. Thus, at least for now, employers may limit the information provided on the EEO-1 Form to data on race, ethnicity and gender by occupational category (but not data on pay or hours worked).
There is similar relief for employers on the DOL overtime issue. As we reported in a previous blog post, the United States District Court for the Eastern District of Texas granted a preliminary injunction last November, blocking the implementation of the Department of Labor’s amendments to the overtime provisions of the Fair Labor Standards Act. On August 31, 2017, the Court took a further step, granting summary judgment blocking the rule. The Court concluded that the Department of Labor exceeded its authority in enacting a rule raising the minimum salary threshold for executive, administrative and professional exemptions. This likely is the official end to President Obama’s Final Overtime Rule, although President Trump may revisit the issue of the minimum salary threshold in the future.
For more information on these issues and their impact on employers, please see our Client Alert.