Collecting Compensation Data

The HR Policy Association strongly opposes legislation and regulations that could make employers’ sensitive compensation data available to the public and stimulate unnecessary litigation.  For example, the Paycheck Fairness Act would direct the Equal Employment Opportunity Commission to collect sensitive pay and compensation data from all covered employers on an annual basis, which it can then disclose publicly, either on its website or through a Freedom of Information Act request.  The Office of Federal Contract Compliance Programs (OFCCP) is also engaged in a rulemaking that would mandate collection of similar pay data on an annual basis from all federal contractors.  The Association objects to the implicit premise in such legislation and regulations that employers should be required to prove they are innocent of employment discrimination rather than embracing the traditional American approach of presuming a party is innocent until proven guilty.  One of the problems with contemporary employment law is that it often punishes employers who treat their employees fairly in an effort to penalize those that discriminate.  OFCCP’s enforcement data show that current compensation discrimination laws are working as intended and that the agency already collects a significant amount of pay data each year from the roughly 4,000 federal contractors that are scheduled for compliance evaluations.