4 | Developments in Equal Pay Litigation ©2024 Seyfarth Shaw LLP This approach to pay transparency has proven quite popular. Many other states are experimenting with similar types of laws. For example, in California, employers must now provide a position's pay scale—a salary or hourly wage range that the employer reasonably expects to pay for a position—in job postings and to third parties that it uses to announce, publish, or otherwise publicize job postings.24 New York’s new law is similar: employers now have to disclose the compensation or compensation range—i.e., the minimum and maximum annual salary or hourly compensation range that the employer believes is accurate—and job description (if it exists) in advertisements for job, promotion, or transfer opportunities that can or will be performed at least partly in the state.25 Some states have gone even further, enacting laws that require employers to submit periodic reports of various pay and demographic data about their workforce in a manner very similar to what the EEOC briefly required as Component 2 of the federal EEO-1 pay report. The EEO-1 Report is a survey document that has been mandated for more than 50 years. Employers with more than 100 employees, and federal contractors or subcontractors with more than 50 employees, are required to collect and provide to the EEOC certain demographic information (gender, race, and ethnicity) in each of ten job categories.26 On February 1, 2016, the EEOC proposed changes to the EEO-1 report, which would have required more detailed reporting obligations of “Component 2 data,” specifically, data on employees’ W-2 earnings and hours worked.27 On August 29, 2017, the EEOC announced that the OMB, per its authority under the Paperwork Reduction Act, had stayed the collection of Component 2 data. The OMB’s decision was immediately challenged in court. 24 See Cal. Lab. Code § 432.3(c). 25 N.Y. Lab. Law § 194-b. 26 For more information, see the EEOC’s dedicated website for data collections: https://eeocdata.org/. 27 See U.S. Equal Employment Opportunity Commission, Agency Information Collection Activities: Revision of the Employer Information Report (EEO-1) and Comment Request, available at https://www.gpo.gov/fdsys/pkg/FR-2016-02-01/pdf/2016-01544.pdf.
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