There were two major developments on the week of March 4 – 8: a federal court reinstated the EEO-1 data collection and DOL issues its proposed overtime rule.
On March 6, 2019, a federal judge effectively reinstated EEOC’s EEO-1 Pay Data Collection (Nat’l Women’s Law Ctr. v. OMB). The EEO-1 Report requires employers to submit employment data to the EEOC categorized by race/ethnicity, gender, and job category. All companies with 100 or more employees or companies with 50 or more employees and a government contract amounting to $50,000 or more are subject to the EEO-1 reporting requirements. The Court stated that because the government issued a temporary stay, employers were on notice that the stay could be withdrawn at any time. This decision comes days before EEO-1 data collection opens for the 2018 year (for information on the 2018 reporting season click here).
Reinstating the rule days before data collection—regardless of what the court believes—is not feasible for employers. I have already privately expressed our concerns to the EEOC and am seeking a workable option for manufacturers, specifically one that provides relief for the 2018 reporting season. I will update the group as soon as I have more information.
On March 7, 2019, the Department of Labor announced its proposed overtime rule. The proposal would increase the minimum salary for overtime exemption to $35,308 per year. It does not include an automatic increase, but commits to periodic review and update of the threshold. It also permits employers to use nondiscretionary bonuses and incentive pay to satisfy up to 10 percent of the salary level. There is no change to the duties test. The rule affects exemptions for executive, administrative, professional, outside sales and computer employees—it does not affect non-management employees, including non-management production-line employees. Once formally published, the public will have 60 days to comment on the proposal. The NAM vigorously fought the 2016 final rule and will thoroughly evaluate this new proposal and educate the Department of Labor about its implications for manufacturers. For more information, click here.