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Is EEO-1 Pay Reporting Back? Important Updates for Government Contractors

In 2016, with much fanfare, the EEOC adopted new summary pay-reporting requirements for all employers who file an EEO-1 report, which includes most employers with at least 100 employees and most federal government contractors with at least 50 employees and a government contract worth at least $50,000. In August 2017, before those new requirements went into effect, the Office of Management and Budget (OMB) issued an immediate stay that excused employers from having to report pay data. But on March 4, 2019, with the 2018 filing period opening in mid-March (pushed back due to the government shutdown earlier this year), a judge in the District of Columbia ruled that the OMB had no grounds to stay the pay collection rules, and the Court lifted the stay. The EEOC had purged from its website its prior guidance and instructions regarding pay collection, and it remains to be seen whether EEOC will require—or even be equipped to receive—payroll compensation data for the 2018 reporting cycle.

For government contractors subject to Section 503 of the Rehabilitation Act, which requires affirmative action to support the employment of individuals with disabilities, be on the lookout for increased OFCCP activity in this area. The agency has announced a new tool, a “Section 503 Focused Review,” to evaluate contractor’s efforts to employ individuals with disabilities. OFCCP has indicated that it will begin these Section 503 Focused Reviews at contractor headquarter locations, and it is expected to publish later this month a courtesy scheduling announcement list of those contractors who have been selected for these new reviews. Contractors can expect that a Section 503 Focused Review would include mandatory on-site visits by OFCCP to interview top human resources and diversity officers, as well as employees who have self-identified as individuals with disabilities.
The OFCCP also has indicated that it will be publishing a courtesy list of contractors selected for a traditional desk audit for the rest of this fiscal year (through September 2019). The OFCCP will publish the list of Contractors selected for the Section 503 Focused Review or a traditional desk audit on the FOIA section of its website.

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Don Berner, the Labor Law, OSHA, & Immigration Law Guy
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Boyd Byers, the General Employment Law Guy
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Jason Lacey, the Employee Benefits Guy
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