Mar 16, 2016 - 8:00am
U.S. Chamber of Commerce
EEOCfs Massive Pay Data Form Wonft Help It Fight Discrimination
In an effort to fight pay discrimination the Equal Employment Opportunity
Commission wants to make employers fill out a massive pay data form.
Not only is it a massive recordkeeping burden—3,360 cells in a spreadsheet—but amassing that data wonft
even help EEOC in fighting pay discrimination.
The EEOC has not gidentified the specific benefit that the collection of
aggregated wage and hours data would provide to the agency,h said Camille Olson,
a lawyer for Seyfarth Shaw, testifying for the U.S. Chamber before the EEOC on
Wednesday:
The EEOC has recognized that differences in education, experience,
training, shift differentials, job classification systems, temporary
assignments, gred circling,h revenue production, and market factors, to name a
few, can legitimately explain compensation differences. Thus, mere differences
in pay even as between comparable employees are insufficient to infer unlawful
discrimination.
By lumping jobs into broad categories,
employers would be forced to categorize employees who perform wildly
different work into these groupings. The job groupings are exceedingly broad,
and will necessarily capture a wide range of positions that are not capable of
meaningful compensation comparisons.
For instance, in a hospital both nurses and lawyers would be lumped together
as gprofessionals.h But itfs as plain as day that these are very different jobs
that require different education, skills and experience, and are therefore
paid differently. The EEOCfs proposal fails to account for these and other
legitimate, non-discriminatory factors that affect employee pay.
Also, if the data is collected, the statistical analysis EEOC will perform on
it gmay not identify actual pay differences that are consistent with
discrimination when it truly exists, and may incorrectly conclude that there is
evidence consistent with discrimination when employees are actually paid
equivalently.h
In other words, the data could lead to both gfalse positivesh and gfalse
negativesh which may unfairly target certain employers and misdirect EEOC
resources.
To sum it up, Olson said, gThere is simply no circumstance under which
broad-brush, aggregate compensation and hours data can be used effectively on a
grand scale to target employers for review.h
EEOC should not go ahead with forcing this paperwork monster on employers,
but instead should use existing tools and information–such as its enormous
backlog of charges–if it truly wants to address pay
discrimination.