ABA, Trade Groups Urge Court to Rescind Pay Data Collection Requirement

The American Bankers Association joined several trade groups in filing a friend-of-the-court brief urging a federal appellate court to reverse a lower court’s order that the U.S. Equal Employment Opportunity Commission collect voluminous EEO-1 data on employees’ pay and hours worked (known as “Component 2 Data”).

The Obama administration had sought to collect these data points before the effort was halted by the Trump administration. In April, the federal district court in Washington, D.C., ordered the EEOC to collect the expanded set of data. Data for calendar years 2017 and 2018 are due Sept. 30, 2019.

In the brief, the trade groups highlighted the significant burden that collection of these data imposes on banks and other employers, while providing little, if any, benefit to the government or the public. The trade groups also asserted that the collection jeopardizes the confidentiality of sensitive employee compensation data.