The March release of the EEO-1 Component 2 dashboard by the Equal Employment Opportunity Commission (EEOC) has sparked a new wave of interest in U.S. pay gaps and potential concerns for businesses. This new data portal allows users to explore pay data from large employers across various industries, broken down by race, ethnicity, gender, and job category. The data from 2017 and 2018 EEO-1 collections offers unprecedented transparency into workforce demographics and compensation practices.

Discussions surrounding gender disparities in various aspects of life have become increasingly prevalent. One critical area where these disparities manifest is in income distribution. On March 12, 2024, the Equal Employment Opportunity Commission (EEOC) released a data dashboard featuring the 2017 and 2018 EEO-1 Component 1 pay data. Although not current, this data provides valuable insights into the persistent challenges faced by women in the workforce, shedding light on a reality that demands immediate attention and action.

President Biden's Executive Order 14069, issued on March 15, 2022, directed the Federal Acquisition Regulatory Council (FAR) to explore limiting or prohibiting Federal contractors from considering job applicants' or employees' past compensation when making hiring decisions. To this end, on December 4, 2023, the FAR submitted a proposal titled "Pay Equity and Transparency in Federal Contracting" to the Office of Management and Budget (OMB) for approval. The proposal was approved by OMB on January 29, 2024, and the FAR released the Notice of Proposed Rulemaking (NPRM), which was published in the Federal Register on January 30, 2024.

The signing of SB-23-105 by Governor Jared Polis on June 5, 2023, marked a significant moment for Colorado's Equal Pay for Equal Work Act. These amendments, effective January 1, 2024, are aimed at promoting greater pay transparency and fairness in the workplace. They not only extend the statute of limitations for wage discrimination claims but also introduce new mandates for the Colorado Department of Labor and Employment (CDLE) in handling these claims. On September 23, 2023, the CDLE released the proposed Equal Pay Transparency Rules (EPT Rules), which were officially adopted on November 9, 2023.

Washington State's Equal Pay and Opportunities Act (EPOA), also known as Senate Bill 571, came into effect on January 1, 2023. The law aims to promote wage transparency and mitigate gender pay disparities. In the brief period since its implementation, a noteworthy number of lawsuits have been filed against non-compliant companies.

OutSolve is pleased to share that our own pay equity expert participated in this year’s HR.com report on the state of pay equity. The report compiles, examines, and analyzes responses from HR professionals from every industry worldwide, mostly from North America. 

Employers are increasingly disclosing pay ranges now based on new pay transparency laws. Though not required in all states, many employers including CPA firms, are using the pay transparency practice to attract and retain talent.

Hawaii is the latest state to require disclosure of wage or salary pay ranges in job listings.

The Ensure Equal Pay for Equal Work Act further defines and clarifies the difference between career progression and job opportunities.