Legal Alert: Payroll Data Due September 30th

The Equal Employment Opportunity Commission (EEOC) has announced a court-approved deadline of September 30th for all employers of 100 or more employees to collect and report to the EEOC data on hours and wages for all job positions broken down by race, sex and ethnicity. With this information, the government will be able to determine the aggregate income received by employees to ascertain if there is a basis for initiating pay bias lawsuits/complaints and investigating potential violations of equal pay laws. It is important to note that this data is not only reportable to the government; it could be sought by former employees claiming that they were paid unfairly based upon a protected characteristic.

From that perspective, a proverbial Pandora’s Box may just have been opened. Given the current legal environment arising out of the Me-Too movement, employers would be well advised to conduct self-audits ahead of their submissions to ascertain whether their payroll data creates a statistical basis for claiming bias in pay practices. If you require more information about the reporting requirements, you may visit the EEOC’s website or contact us below.

If you have any questions about this article, please direct them to Ari Karen.

About Ari Karen | 240.507.1740 | CEO, Strategic Compliance Partners

Ari Karen is an experienced litigator who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.

Mr. Karen speaks regularly on topics affecting all types of lenders including fair lending and disparate impact, LO compensation, marketing service agreements, compliance with social media, non QM lending, vendor management, and much more. Mr. Karen is a principal in the Financial Institutions Regulatory and Labor and Employment practice groups of the Offit Kurman law firm. He is also the Founder and CEO of Strategic Compliance Partners (SCP), a total-solution, mortgage compliance consulting firm.

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