Business groups are blasting the Obama administration’s new pay reporting rule.

Business groups are blasting the Obama administration’s new pay reporting rule.–8gh.

The White House announced last week that the Equal Opportunity Employment Commission (EEOC) is drafting a rule in partnership with the Department of Labor that will require companies with 100 or more employees to report pay by race, ethnicity and gender in an effort to close pay gaps in workplaces.

EEOC Chairwoman Jenny Yang said the new data will be used to aid investigations, assess complaints and identify existing pay disparities that warrant further examination.

Because companies will be required to report compensation data for extremely broad job categories, including professionals, technician and sales employees, RILA said the rule ignores the fact that employees are paid differently based on their skills and that there are often regional differences in compensation.

While the chamber supports nondiscrimination in compensation, it said the type of reporting proposed will create unnecessary burdens while providing no meaningful insight as to whether employer pay practices are discriminatory.

“These types of disclosures not only raise privacy issues, but reporting raw data does not depict the true reflection of a workplace, resulting in misleading information and confusion,” she said. “We will continue to look into the details of the proposal and will work with all stakeholders on this proposed regulation.”

source–the hill, jenny yang, rila, randy johnson, amanda wood, nsm

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