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Legal Insider: New Equal Pay Reporting Rules for Employers

by John V. Berry — February 8, 2016 at 2:00 pm 0

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This is a sponsored column by attorneys John Berry and Kimberly Berry of Berry & Berry, PLLC, an employment and labor law firm located in Reston that specializes in federal employee, security clearance, retirement, and private sector employee matters.

In a significant move, President Obama has initiated the process for new rules that would be a stronger focus on enforcing equal pay. Specifically, the president, through the Equal Employment Opportunity Commission (EEOC) and other agencies, is proposing new regulations that would require companies with over 100 employees and certain government contractors to report pay data by gender, race, and ethnicity. The proposal would cover over 63 million employees.

The Chair of the EEOC, Jenny R. Wang, stated that “[t]he pay data will provide EEOC . . . with insight into pay disparities across industries and occupations. Our agencies will use this data to more effectively focus investigations, assess complaints of discrimination, and identify existing pay disparities that may warrant further examination.”

Chair Wang’s remarks and additional information were delivered at the White House Equal Pay event on Jan. 26.

Companies with over 100 employees and certain government contractors with more than 50 employees are currently required to report the number of individuals they employ by job category and by race, ethnicity, and sex. Under the new rule, such companies will also be required to report employees’ taxable earnings for the past year, including tips, taxable benefits, and applicable bonuses.

These new reporting requirements will help the enforcement of equal pay laws and likely cause employers to ensure that they are paying attention to disparities in pay between men and women. The new regulations are likely to be completed by 2016 and the initial reporting requirements for employers are likely due in September 2017.

We represent employees in federal employment matters nationwide, as well as private and public sector employees in employment matters in the Commonwealth of Virginia, Washington, D.C., and Maryland. If you need assistance with an employment issue, please contact our office at (703) 668-0070 or at www.berrylegal.com to schedule a consultation. Please also visit and like us on Facebook at www.facebook.com/BerryBerryPllc.

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