The Institute Joins Amicus Brief Supporting Reversal of Component 2 Decision

On August 26, 2019, The Institute joined other employer groups, including the U.S. Chamber of Commerce, Society for Human Resource Management (SHRM), and the Center for Workplace Compliance, asking the D.C. Court of Appeals to reverse the U.S. District Court decision reinstating the EEO-1 Component 2 pay data report.

The brief begins by supporting the U.S. Department of Justice’s arguments that the plaintiffs did not have standing and that the district court should not have vacated the stay implemented by OMB. Even if the plaintiffs had standing and the district court had the authority to vacate the stay, the brief argues the court should have remanded review of Component 2 to the OMB and EEOC rather than ordering EEOC to immediately implement data collection.

The brief goes on to argue the district court’s decision to implement Component 2 failed to take into account the administrative record demonstrating Component 2 imposed unwarranted burdens on employers, and that the decision lacked utility for the agencies and raised significant confidentiality concerns for the sensitive employer pay data that has to be submitted.

The Institute will keep members informed on the status of this litigation, but feels that it is unlikely the D.C. Court of Appeals will reverse the district court’s decision prior to September 30, 2019.

Click here to read the full Amicus Brief supporting the reversal of the Component 2 decision.