Important EEOC Update and Legal Advisory

Important EEOC Update and Legal Advisory

(APRIL 26, 2019) - In 2016, the Equal Employment Opportunity Commission (EEOC) published a proposed change in the employment data employers would be required to collect and provide to the agency.  In September 2016, the Office of Management and Budget (OMB) authorized the EEOC to collect the new data.

In August 2017, in response to a petition filed by business groups, OMB rescinded the previous approval of the new data collection rule and stayed collection of the data pending further review.  A lawsuit was filed in November 2017 by the National Women’s Law Center (NWLC) and others, urging the court to overturn OMB’s revocation of its previous approval for the new data collection.  On March 4, 2019, an Obama-appointed judge on the U.S. District Court for the District of Columbia invalidated OMB’s rescission of its prior approval of the data collection and ordered the EEOC to collect compensation data by May 2019.

On April 25, the district court judge issued a new order extending the deadline for collection of the data to September 30th and requiring the EEOC to collect two years’ of data.  Click here to read NAW’s just-published Legal Advisory on this issue and the new order.

The Justice Department may appeal this decision.  In addition, the business community is considering legal action to support an appeal, and NAW will likely participate in a business legal action.

Unfortunately, the current EEOC does not have a quorum of commissioners and therefore cannot take any action to delay the data collection or engage in a new rulemaking.  Until the Senate confirms the nomination of a Trump nominee to the commission, it will remain without a quorum and unable to act.  NAW and our business coalition partners recently sent a letter to Senate Majority Leader Mitch McConnell urging quick Senate action to confirm the pending EEOC nomination so the Commission will be able to act in this matter.

Click here to read a background document on this data collection issue and click here to see our letter to Senator McConnell. (National Association of Wholesaler-Distributors)