By Nick Goldstein, vice president of regulatory and legal issues, ARTBA
The U.S. District Court for the District of Columbia March 4 ordered the Office of Management and Budget (OMB) to move forward with reporting requirements for many employers, including larger contractors working on federal-aid construction projects. OMB in 2017 halted Equal Employment Opportunity Commission (EEOC) regulation from the Obama administration.
The D.C. court found OMB had not sufficiently justified its decision to halt the regulation. The court ruled the agency failed to show any “potentially disruptive consequences.” Once implemented, the regulation will require all private contractors with 100 or more employees working on federal-aid projects to report data reflecting salary and number of hours worked for employees via the “EEO-1” form. Currently, employers are only required to report on ethnicity, race, and gender of their employees via the form.
In 2016, ARTBA commented to the EEOC and OMB that the new EEO-1 reports will not include information on the employees’ seniority, education level and performance and therefor paint an inaccurate picture of the employee’s salary level. ARTBA is also wary of the new collection of proprietary salary information also raising security and privacy concerns, considering recent large-scale breaches of confidential data entrusted to the federal government.
The government has not indicated whether it will appeal the decision. The implementation date for the new EEO-1 requirements has not bee announced. ARTBA will continue to monitor this situation.