A new study from the National Academies of Sciences, Engineering, and Medicine concluded that collecting pay data can help the U.S. Equal Employment Opportunity Commission (EEOC) root out race and sex discrimination, and the EEOC welcomed this finding.
"Collecting and analyzing pay data can be a useful tool in preventing and combating pay discrimination in American workplaces," said EEOC Chair Charlotte Burrows.
Since 1966, the EEOC has required employers to provide information from the previous year about the number of employees who worked for the business, sorted by job category, race, ethnicity and gender. Businesses with 100 or more employees and some federal contractors with at least 50 employees must submit an annual EEO-1 report.
In 2017, the EEOC began requiring employers to submit information on employees' pay, as well, to enhance the agency's efforts to sue for pay discrimination, but it halted this collection in 2019 following employer complaints about the collection of pay data being burdensome.
The EEOC may decide to resume collecting Component 2 data, but it has not committed to doing so yet. The National Academies of Sciences recommended that the EEOC expand and strengthen its data collections to address pay disparities between women and men and between different racial and ethnic groups.
The study found some flaws, including missing data and response inconsistencies. Researchers also stated that the data is limited because it doesn't address LGBTQ status,...
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