American News Apr 6, 2021 12:11 AM EST

Biden admin anticipated to make companies report their employee pay on basis of race and gender

An Obama-era initiative that was delayed throughout the Trump administration is likely making a comeback during Biden’s time in office.

Biden admin anticipated to make companies report their employee pay on basis of race and gender
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The executive orders and policy focus of the current White House lines up an anticipated regulatory move delayed by Biden's predecessors.

According to The Daily Wire, such a move is a measure that would enable activist groups to review which American businesses would be guilty of “pay gaps” on that basis. The writing was on the wall in the first week of the Biden administration, as his White House published an executive order and memo on the issue of achieving equity through the lens of identity politics.

President Obama put the plan in motion back in January 2016. The announcement of his new rules set up a system where the Equal Employment Opportunity Commission could launch lawsuits against companies guilty of pay gaps. It’s described as an apparatus of shaming as the companies would be publicly named in the litigation.

Critics at the time pointed out the “unnecessary and onerous burdens on employers” the new rules would have.

When President Trump took office, he halted this new rule within the first year of his administration. Trump's people in the Office of Management and Budget cited concerns: “OMB is concerned that some aspects of the revised collection of information lack practical utility, are unnecessarily burdensome, and do not adequately address privacy and confidentiality issues.”  

Trump’s opponents denounced it as him getting in the way of guaranteeing “prosperity” for every American, like he promised in his campaign.

A lawsuit overturned Trump’s overturning of the initiative. They successfully sued the EEOC and OMB to reinstate collection of pay equity data for 2017 and 2018. But that was for that period alone. Fast forward to March 2021 and we have the EEOC announcing a new term of data collecting for only race, ethnicity and gender (“Component 1”) is coming up. Compensation and pay (“Component 2”) is waiting reinstatement.

What the hold-up is, per Daily Wire, is a current three on two Republican majority for the EEOC. Biden would have to directly fire someone if he wanted to speed up the process before July 2021, when Janet Dhillon’s term expires. But according to former EEOC member Victoria Lipnic, a reinstatement of EEO-1 Component 2 is in the cards.

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