WASHINGTON, DC – Today, U.S. Senators Cory Booker (D-NJ), Patty Murray (D-WA), and Kirsten Gillibrand (D-NY) sent a letter to the Office of Management and Budget (OMB) urging the agency to keep in place a crucial revision made to the Employer Information Report (EEO-1) form that collects compensation data to help address the persistent race and gender wage gap. The letter was signed by 27 Senators and supported by 54 civil rights organizations.
The new EEO-1 form – set to go into effect next year – will now ask information about employee pay; existing versions of the EEO-1 form do not ask about employee pay.
“The EEO-1 Form has long served as a useful tool for the EEOC to gather data to help safeguard workers’ federally protected right to work free of discrimination based on race, ethnicity, or gender,” the lawmakers wrote in the letter to OMB Director Mick Mulvaney. “The addition of compensation data to the EEO-1 was long overdue, and the data offers real potential to help large employers understand and address the pay gap within their individual workforce.
“By collecting more and better data, the Federal Government can better uphold our collective ideal that all hard-working Americans enjoy a fair and level playing field at work,” the lawmakers added.
The revision to the employer form was finalized in September 2016 after a lengthy and rigorous review process that included two rounds of notice and public comment, as well as significant engagement with employers. The change increases transparency about the wages earned by employees of different genders and races, allowing the Equal Employment Opportunity Commission (EEOC) to better enforce non-discrimination law.
Today’s letter comes on the heels of a letter sent earlier this month to OMB Director Mulvaney by U.S. Senators Lamar Alexander (R-TN) and Pat Roberts (R-KS) calling on the OMB to rescind this change to the EEO-1 form. While the Senators argued that the revision would be a burden for businesses, EEOC’s and OMB’s rigorous review process determined the change would not be a burden for employers.
Last year, while the EEOC was considering changes to the EEO-1 form, Senators Booker, Murray, and Gillibrand led a letter to the EEOC Chair supporting changes that would allow for the collection of pay data. The letter was signed by more than two dozen Senators.
In addition to Senators Booker, Murray, and Gillibrand, the following Senators signed onto today’s letter:
Sherrod Brown
Chris Coons
Richard Durbin
Patrick Leahy
Richard Blumenthal
Maria Cantwell
Elizabeth Warren
Catherine Cortez Masto
Bob Casey
Maggie Hassan
Tammy Baldwin
Jeff Merkley
Brian Schatz
Robert Menendez
Jack Reed
Chris Van Hollen
Al Franken
Ed Markey
Sheldon Whitehouse
Kamala Harris
Mazie Hirono
Bernie Sanders
Chuck Schumer
Ron Wyden
Organizations supporting the Booker, Murray, Gillibrand letter:
9to5, National Association of Working Women
A Better Balance
American Association of University Women (AAUW)
American Civil Liberties Union
Atlanta Women for Equality
Catalyst
Center for Advancement of Public Policy
Center for American Progress
Coalition of Labor Union Women
Communications Workers of America (CWA)
Congregation of Our Lady of Charity of the Good Shepherd
Equal Pay Today!
Equal Rights Advocates
Family Values @ Work
Feminist Majority
Futures Without Violence
Gender Justice
Institute for Science and Human Values
Interfaith Worker Justice
International Federation of Professional and Technical Engineers (IFPTE)
Jewish Women International
Labor Project for Working Families
Lawyers' Committee for Civil Rights Under Law
The Leadership Conference on Civil and Human Rights
Legal Voice
Los Angeles Black Worker Center
Make it Work
MomsRising.org
NAACP
National Advocacy Center of the Sisters of the Good Shepherd
National Black Justice Coalition
National Center for Lesbian Rights
National Center for Transgender Equality
National Committee on Pay Equity
National Council of Jewish Women
National Council of Women's Organizations
National Employment Law Project
National Employment Lawyers Association
National LGBTQ Task Force
National Organization for Women
National Partnership for Women & Families
National Women's Law Center
NETWORK Lobby for Catholic Social Justice
PolicyLink
PowHer New York
Protect All Children's Environment
Public Citizen
Sargent Shriver National Center on Poverty Law
Sisters of Our Lady of Charity of the Good Shepherd, US Provinces
The United State of Women
United Sikhs
US Human Rights Network
Women Employed
Women's Law Project
The full letter is below:
May 1, 2017
The Honorable John M. Mulvaney
Director
Office of Management and Budget
725 17th Street NW
Washington, DC 20503
Dear Director Mulvaney:
In recent weeks, a collection of business groups and several of our Congressional colleagues have called on your office to reverse or modify a critical data collection meant to provide new transparency and understanding regarding the unacceptable and persistent gap between what men and women in our country are paid for the same work.
We write to make clear that any effort to re-open and revisit those data collection requirements will be seen as an affront to the effort to address the fact that women in our country are paid just 80 cents on the dollar on average compared to men in comparable positions.
As you know, six months ago the Equal Employment Opportunity Commission (EEOC) and the Office of Management and Budget (OMB) completed a revision to the EEO-1 Form pursuant to the Paperwork Reduction Act. For the first time, the EEO-1 Form will collect information about employees’ pay. There has been no change in circumstances in the intervening six-month period and no demonstration that there was any material error in the substantial data and analysis provided by the EEOC to your office. Thus, it would appear that there is no basis to reopen or revise the data collection requirements.
The EEO-1 Form has long served as a useful tool for the EEOC to gather data to help safeguard workers’ federally protected right to work free of discrimination based on race, ethnicity, or gender. The addition of compensation data to the EEO-1 Form was long overdue, and the data offers real potential to help large employers understand and address the pay gap within their individual workforce. Transparent pay data will advantage all stakeholders. Employers can leverage data to benchmark their performance versus their competition, and inform human resources departments to make data-driven changes to address existing pay gaps. Employees will benefit because the existence of pay data will enable them to gather information that could indicate they have experienced pay discrimination. The compensation data will also strengthen the EEOC’s ability to investigate allegations of pay discrimination and better enforce existing law.
Transparency is a critical tool that has the potential to make a difference for women across professions and salary levels. Transparency can also address the fact that the pay gap is even wider when broken down by race, with African American women making only 63 cents and Latina women making only 58 cents for every dollar that white non-Hispanic men are paid. Addressing the pay gap has the potential to cut the poverty rate amongst working women in half and would have tremendous benefit to the overall economy. By collecting more and better data, the Federal Government can better uphold our collective ideal that all hard-working Americans enjoy a fair and level playing field at work.
As you are likely aware, rigorous assessment and consultation has made clear the revised EEO-1 Form would not unduly burden employers. OMB previously approved the EEO-1 Form revision on September 29, 2016 for a term of three years after an extensive and transparent process that involved two rounds of notice and public comment, including significant engagement with the employer community. A 2012 National Academy of Sciences’ study regarding the collection of compensation data concluded that use of the EEO-1 Form for pay data collection would be “quite manageable for both the EEOC and the respondents.” The EEOC additionally undertook its own study to determine the most efficient way to collect this data, and took steps to minimize any burden of the EEO-1 Form revisions on employers, including moving the EEO-1 Form filing deadline from September to March, using W-2 income as a measure of compensation, and coordinating data collection between the EEOC and the Department of Labor’s Office of Federal Contract Compliance Programs. Moreover, suggestions that requiring employers to disclose how many employees fall within particular pay categories pose risks to employee privacy—when employers face criminal penalties for disclosure and other strong safeguards have been put in place—can only be regarded as an effort to oppose any type of pay transparency.
We strongly support the changes made to the EEO-1 Form and believe that no additional changes are warranted or can be supported under the Paperwork Reduction Act at this time. We look forward to working together to make the existing revisions to the EEO-1 data collection a success for employers and employees after the thorough and careful process undertaken by the EEOC and OMB. With new transparency from large employers, we can all expect to see progress in our shared goal of ensuring equal pay for equal work.
The light this information would shine on the persistent pay gap in this country will help to ensure that equal pay for equal work is finally made a reality.
Sincerely,