Employers Protest EEOC Proposal: The Obama administration’s proposal to require employers with 100 or more employees to report data on compensation and diversity is, not surprisingly, drawing criticism from employers. Shannon Farmer, a partner at the law firm Ballard Spahr LLP, described the proposal to Morning Shift as the “first incursion by the government into gathering this kind of compensation and hours worked on an involuntary basis from private employers who are not government contractors.” She said employers will likely be concerned about data security, since compensation information can be competitively sensitive information.

Farmer also said employers are concerned the EEOC is gathering the information “for the purpose of making it easier to take enforcement action against employers for wage discrimination.” She said the data could increase litigation both from the EEOC and from private plaintiffs, who can use the aggregate data to try to show discrimination. Farmer said that while the gender pay gap remains a problem, “there’s going to be legitimate questions about whether this is the way to get that and whether it justifies government intrusion in the pay practices of basically every employer in the country.”

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