Trump Administration to Halt Pay Data Reporting Rule

Trump Administration to Halt Pay Data Reporting Rule

The White House is putting the brakes on a rule proposed by the Obama administration in 2016 that would have required organizations with more than 100 employees to submit summary pay data to the Equal Employment Opportunity Commission each year showing what employees of each gender, race, and ethnicity earn. The previous administration said the rule, which was to become effective next spring, would help the EEOC identify gender and racial pay discrimination, but according to the Wall Street Journal, the Trump administration disagrees:

“It’s enormously burdensome,” said Neomi Rao, administrator of the Office of Information and Regulatory Affairs, which analyzes the cost of federal rules and regulations. “We don’t believe it would actually help us gather information about wage and employment discrimination.”

When President Trump took office in January, his administration was expected to reverse many Obama-era policies created through executive action that were considered unfriendly or overly burdensome to employers, including the pay gap reporting rule. As recently as early August, employers were unsure whether to proceed in preparing to comply with this rule, but now, at least for the time being, the law will not go into effect. The Journal reports that in a memo sent to Victoria Lipnic, the acting chairwoman of the EEOC, on Tuesday, Rao said the White House Office of Management and Budget would stay the rule pending a review, as the administration believes it violates federal laws intended to reduce excessive paperwork.