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Why PR professionals need to grasp the potential liability for pay equity claims

Pay equity is not just an important topic in the upcoming presidential election. It is also the subject of new regulation. Last week, the U.S. Equal Employment Opportunity Com- mission said that starting in March 2018, it will collect summary employee salary and incentive compensation data for all employers who employ more than 100 staffers. Companies with fewer than 100 employees will also be required to submit this data if they are federal contractors or subcontractors.
According to the EEOC, this data will “improve investigations of possible pay discrimination which remains a contributing factor to the persistent wage gap” between men and women in similar posi- tions.The EEOC also announced it will use this pay data to assess complaint of discrimination, focus agency investigations, identify existing pay disparities, and will not disclose data for a speci c employer. Instead, it will only publish larger aggregated data that “fully protects employer con dentiality and employee privacy.”
More information about the revised EEO-1 report, including the new Fact Sheet for Small Business form, and a question and an- swer document are available on EEOC’s website. Even before the EEOC begins collecting this data, a number of leading compa- nies (including Amazon, American Airlines, Johnson & Johnson, and PepsiCo) have voluntarily signed the White House’ Equal Pay Pledge, by which employers agree to review their pay statics annu- ally in an effort to reduce the gender pay gap.

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