Providing Employee Compensation Information to the EEOC – What Business Owners Should Know

EEOC Employee Compensation
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    The Equal Employment Opportunity Commission enforces federal laws that prevent employers from discriminating against employees on the basis of race, gender, age, national origin, and so on. Every year there is a deadline that employers must meet when it comes to reporting the compensation details of all of their employees. 

    There are currently over 70,000 private companies (with over 100 workers) here in the U.S. who are subject to reporting their employee compensation information to the EEOC. These companies currently employ over 54 million American workers. The deadline for reporting employee compensation information was September 30th of this year. 

    Opinions On Both Sides

    As with any other issue, there are proponents and critics of the mandate that now requires by law that employers report their in-depth employee compensation information to the EEOC. 

    The Obama administration initially set the rollout date for the required reports. However, the Trump administration stalled this two years ago, because they believe that collecting such in-depth data on employee benefits and salaries would require too many company resources. These critics say that requiring this in-depth information is a massive burden that uses up a significant amount of manhours. 

    Critics also say that it is next to impossible to account for those employees who improve their skills outside of the workplace by obtaining things like industry certifications and training that is not required by the company. Critics also add these reporting laws don’t take into account other income employees might receive, such as stock options, incentive-based work performance bonuses, and their benefits packages. Critics also say that some employees aren’t exactly comfortable sharing what they make with their coworkers. 

    Proponents say that the new reporting mandate will help close the gap in employee compensation that exists between genders and races. The EEOC says that the reason behind the required reporting is so that they can get a clearer picture of which discrimination complaints should be looked into. In 2018, there were 75,000 of such complaints reported to the EEOC. There are some who say that the EEOC is drastically underfunded, and that “Congress has failed to provide oversight of the EEOC to promote fair and effective enforcement of America’s civil rights laws.”

    Specifics of Reporting Requirements 

    No matter what opinion an individual employer has on the requirement to report, the fact is that it’s the law. So what exactly are the requirements? The employee reporting mandate to the EEOC is only subject to companies that employ more than 100 workers. Employers must share how many hours each employee worked. It is required that the reports a broken down for a “median employee” spanning various job categories – like executives, directors, managers, supervisors, and so on. Reports for both full and part time employees are required, as well as the data must be broken down by ethnicity, gender and age of each employee. 

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