Pay data collection expected under Biden administration

President Joe Biden has made clear his administration will prioritize closing the gender and race pay gap, and both he and Vice President Kamala Harris have signaled that pay data reporting will play an integral role in accomplishing this. Many employers were required to submit Component 2 pay data with their EEO-1 reports in 2019, but the Trump administration had decided not to pursue further collections. While it now appears almost certain employers will be subject to similar reporting requirements moving forward, it remains unclear what form the reporting might take.

A study is currently underway to assess the "quality and utility" of the Component 2 data collected in 2019. If the study concludes Component 2 provided an effective tool for assessing pay disparities, the Biden administration may seek to reinstitute that collection. Alternatively, if the study reveals deficiencies in the Component 2 collection, the administration may take another route, such as the "Equal Pay Certification" plan promoted by Vice President Harris during the campaign, which would require employers to show they are paying employees comparable pay for comparable work. While the manner of the collection must still be determined, employers should prepare to report their pay data in the near future.

Coinbase charged with underpaying female, black workers