ILMA Compoundings September 2016 - 36

POWER PLAY How Much Money Do You Make? The EEOC Wants to Know Daniel T. Bryant T he Equal Employment Opportunity Commission (EEOC) recently published a notice in the Federal Register that employers will be required to submit employee wage information if that business has 100 or more employees. The EEOC estimates that the new information submitted will cover over 63 million employees and contends the regulation is necessary because of its ongoing concerns with pay disparities between women and men and among different ethnicities and races. EEOC intends to utilize the data collected to ascertain whether certain employers are engaging in discriminatory practices. EEOC is not issuing this requirement under the formal noticeand-comment procedure that is generally required under the Administrative Procedures Act. Rather, this is a technical requirement under the Paperwork Reduction Act that mandates the Office of Management and Budget (OMB) "sign-off" on an agency's data collection request. Before doing so, OMB must decide if the information/data collection "strikes a balance between collecting information necessary to fulfill [the agency's] statutory missions and guarding against unnecessary or duplicative information that impose unjustified costs on the American public." Therefore, it is possible that OMB will deny EEOC's request;1 however, it seems unlikely. Current Requirements and New Pay Reporting Provisions Covered employers currently are required to submit information to the EEOC on race, ethnicity, gender and job categories for all employees. This information is now referred to as "Component 1-Demographic Information," and it is submitted on the Employer Information Report "EEO-1." In addition to the current Component 1 requirements, employers will now have to provide pay ranges based on "box one" of W-2 forms and must report hours worked by employees. This information will now comprise "Component 2-Pay and Hours Worked Data" of the EEO-1. In order to determine which employees to report, employers must take a "snapshot" of a pay period between Oct. 1 and Dec. 31. Those employees counted in the "snapshot" would be the ones who must be reported on the EEO-1. How to Accurately Account for Time In order to accurately report employee time, employers must utilize the definition of "hours worked" as the term is defined in the Fair Labor Standards Act (FLSA) that includes "all time an employee must be on duty or on the employer's premises or at any other prescribed place of work, from the beginning of the first principal activity of the workday to the end of the last principal activity of the workday." Reporting obligations are slightly different depending upon whether an employee is exempt under the FLSA. For nonexempt employees, all hours (including overtime) worked must be reported. For exempt employees, employers have two options - report all hours worked or report 40 hours per week for each full-time, exempt employee. Pay Bands Further information must be provided regarding ethnicity, gender and job category of each individual employee within certain "pay bands." Employers have to provide data in the following pay bands: 1. $19,239 and under 7. $62,920-$80,079 2. $19,240-$24,439 8. $80,080-$101,919 3. $24,440-$30,679 9. $101,920-$128,959 4. $30,680-$38,999 10. $128,960-$163,799 5. $39,000-$49,919 11. $163,800-$207,999 6. $49,920-$62,919 12. $208,000 and over Reports must be filed for each establishment, so multiestablishment employers must file a report for each facility. Vol. 66 No. 9 * 36 * September 2016 Compoundings

Table of Contents for the Digital Edition of ILMA Compoundings September 2016

FROM THE CEO
BOARD BRIEF
NOTES FROM MSCI
THE HEART OF ILMA
THE ARGUS ANALYSIS
VOICES & VIEWS
INTERNATIONAL INSIGHT
SPEAKER SPOTLIGHT
FAMILY BUSINESS
FINANCIAL FREEDOM
RULES & REGS
POWER PLAY
LEGAL EASE
THE WHITE PAPER
ADVERTISERS INDEX
ILMA Compoundings September 2016 - 1
ILMA Compoundings September 2016 - 2
ILMA Compoundings September 2016 - 3
ILMA Compoundings September 2016 - 4
ILMA Compoundings September 2016 - FROM THE CEO
ILMA Compoundings September 2016 - 6
ILMA Compoundings September 2016 - 7
ILMA Compoundings September 2016 - 8
ILMA Compoundings September 2016 - BOARD BRIEF
ILMA Compoundings September 2016 - 10
ILMA Compoundings September 2016 - 11
ILMA Compoundings September 2016 - 12
ILMA Compoundings September 2016 - NOTES FROM MSCI
ILMA Compoundings September 2016 - 14
ILMA Compoundings September 2016 - THE HEART OF ILMA
ILMA Compoundings September 2016 - 16
ILMA Compoundings September 2016 - 17
ILMA Compoundings September 2016 - 18
ILMA Compoundings September 2016 - 19
ILMA Compoundings September 2016 - 20
ILMA Compoundings September 2016 - THE ARGUS ANALYSIS
ILMA Compoundings September 2016 - 22
ILMA Compoundings September 2016 - 23
ILMA Compoundings September 2016 - VOICES & VIEWS
ILMA Compoundings September 2016 - 25
ILMA Compoundings September 2016 - INTERNATIONAL INSIGHT
ILMA Compoundings September 2016 - 27
ILMA Compoundings September 2016 - SPEAKER SPOTLIGHT
ILMA Compoundings September 2016 - 29
ILMA Compoundings September 2016 - FAMILY BUSINESS
ILMA Compoundings September 2016 - 31
ILMA Compoundings September 2016 - FINANCIAL FREEDOM
ILMA Compoundings September 2016 - 33
ILMA Compoundings September 2016 - RULES & REGS
ILMA Compoundings September 2016 - 35
ILMA Compoundings September 2016 - POWER PLAY
ILMA Compoundings September 2016 - 37
ILMA Compoundings September 2016 - LEGAL EASE
ILMA Compoundings September 2016 - 39
ILMA Compoundings September 2016 - THE WHITE PAPER
ILMA Compoundings September 2016 - 41
ILMA Compoundings September 2016 - ADVERTISERS INDEX
ILMA Compoundings September 2016 - 43
ILMA Compoundings September 2016 - 44
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