Wednesday, March 23, 2016
Evil Black Economists comments on EEOC proposal to collect pay data
We supported the EEOC change to collect in a public comment.
And the comment itself...
Hooray for the EEOC!! They are finally taking steps to get the American people the "missing" data on compensation. This action will fill an important data gap in our understanding of pay inequality.
The United States has a large and persistent pay gap between men and women and whites and minorities. The pay gap in the US has remained in place for many years. Legislation was passed but pay differences have barely changed. We need better data and tools to eliminate this gap. Knowledge is power
As a long time computer professional who has worked on HR and ERP systems: the electronic data is there, easily accessible and can be reported in excel with minimal effort. If I have less than 100 employees, I would dump the data into excel and file electronically. If I have my own HRIS system, then I would extend the EEOC-1 report with more data to meet EEOC-2 requirements. In addition, Payroll companies like ADP and Paychex, could produce the report.
I support the proposed EEOC reporting change because it would help us better understand the scope and scale of pay differences in the United States.
A lot of the arguments against the proposal fall into three groups:
1. It's too hard to get the data. It's too burdensome.
The EEOC is trying collect data in an area where there is no data at all. They are trying to shed light on an important issue in our society. Helping to resolve the issue in the US is worth a couple of extra hours.
2. EEOC-2 won't provide the information the EEOC is looking for. Data does not include education, experience, level, location, etc. which can affect pay.
Researchers, academics and policy makers have nothing right now, nothing, so any data is an improvement.
3. The EEOC is unclear about the definition of pay / salary / total compensation
The salary bands provided are very wide and leave lots of room for estimation.
4. We don't want to expose our company to any liability for unequal pay.
This one I cannot help you with.
American business should think about what's good for America. (Sorry Calvin Coolidge)
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