A U.S. District Judge for the District of Columbia vacated the Office of Management and Budget’s (OMB) stay of the Equal Employment Opportunity Commission’s (EEOC) revised EEO-1 form and the September 15, 2017, Federal Register Notice implementing the stay (Staying the Effectiveness of the EEO-1 Pay Data Collection, 82 Fed. Reg. 43362). Nat’l Women’s Law Ctr. et al. v. OMB et al., No. 17-2458 (D.D.C. Mar. 4, 2019). The court immediately restored the prior directives of the EEOC and OMB requiring use of a revised EEO-1 form where employers with at least 100 employees have to report detailed information on their employees’ wages and hours, broken down by gender, race, and ethnicity.

The decision arises in a case brought by the National Women’s Law Center and other plaintiffs against OMB and the EEOC in which the plaintiffs challenged OMB’s decision to stay the EEOC’s pay data collection efforts. The expanded pay data collection was initially approved by OMB under the Obama Administration in September 2016. The Trump Administration stayed the pay data collection in August 2017, after concluding the pay reporting requirements would be too burdensome. The plaintiffs argued the pay data collection efforts are central to closing the race and gender wage gaps.

Judge Tanya S. Chutkan held that OMB’s stay of EEOC’s pay data collection was illegal because it did not comply with OMB’s regulations. In particular, the court held that OMB had not shown that a relevant circumstance changed or that there was good cause shown after consultation to support the change in position.

Having found that the OMB’s stay of the EEOC’s pay data collection was inappropriate, Judge Chutkan acknowledged that there was discretion to fashion an appropriate remedy. Judge Chutkan held that vacatur of the OMB stay was appropriate and immediately restored the EEOC’s prior pay data collection requirements. Judge Chutkan dismissed arguments that vacatur and restoration of the prior directive would cause disruption, saying that the argument was unsupported by the record.

The current EEO-1 filing deadline for 2018 is May 31, 2019. We will continue to monitor developments and provide updates as they become available. Please contact a member of our Pay Equity Resource Group for further assistance.

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Photo of Stephanie E. Lewis Stephanie E. Lewis

Stephanie E. Lewis is the Office Managing Principal of the Greenville, South Carolina, office of Jackson Lewis P.C. She is the Co-Chair of the Pay Equity Resource Group. Ms. Lewis represents employers in employment litigation and advises clients on preventive practices and policies to avoid litigation.

Ms. Lewis has handled all aspects of employment law but focuses on sexual harassment, pay discrimination, and disability discrimination issues in the automotive, manufacturing, retail, and pharmaceutical industries. She regularly presents on employment-related topics to Bar and industry groups.

Ms. Lewis served as a law clerk for Karen Johnson Williams of the Fourth Circuit Court of Appeals and Patrick Michael Duffy of the United States District Court for the District of South Carolina.

While attending law school, she served as Articles Editor of the North Carolina Law Review and received the James E. and Carolyn B. Davis Award for Character and Service.

Photo of K. Joy Chin K. Joy Chin

Joy Chin is a Principal in the Long Island, New York, office of Jackson Lewis P.C. She is the Co-Leader of the Affirmative Action Compliance and OFCCP Defense Practice Group and Chair of the firm’s Pay Equity Resource Group.

Ms. Chin has over 20 years’ experience helping employers navigate EEO and affirmative action regulations in the course of running their businesses. She regularly works with corporate counsel and human resources managers to develop practical approaches to EEO and affirmative action compliance. Ms. Chin successfully has defended employers in litigation, OFCCP audits and Equal Employment Opportunity Commission (EEOC) and Office of Federal Contract Compliance Programs (OFCCP) complaint investigations, including “glass ceiling” audits and claims of systemic discrimination in pay, hiring, promotion and termination.

Ms. Chin oversees a team of AAP analysts and data specialists in the preparation of hundreds of affirmative action plans (AAPs), EEO-1 and VETS-4212 reports each year for the firm’s government contractor clients. In addition, Ms. Chin and the firm’s team of Ph.D. and Master’s statisticians work closely with national clients to design and conduct in-depth analyses of compensation and bonus awards systems to identify and address potential problems before they arise.