On January 29, 2016, the seventh anniversary of the Lilly Ledbetter Fair Pay Act, the Equal Employment Opportunity Commission (EEOC) announced its proposed addition of pay data to currently required EEO-1 reports. The announcement has been the subject of much speculation for employers and attorneys, with many dreading an additional layer of administrative expenses for businesses. Employers should beware, however, because this effort may be a Trojan horse, intended to facilitate the EEOC’s future litigation efforts.

When would the changes take effect? Which employers are covered?

The proposal is expected to be finalized by September 2016. The first reports are projected to be due in fall 2017, and would cover private employers with at least 100 employees. At this point, however, the rule is only a proposal.