OMB ordered to restore gender, race pay data reporting rule

A federal judge in Washington, D.C., on Tuesday ruled that the Trump administration must restore a rule requiring some employers to report salaries, broken down by race and gender.

Reuters reports that U.S. District Judge Tanya Chutkan wrote in her decision that the Office of Management and Budget (OMB), which has been led by acting White House chief of staff Mick Mulvaney since 2017, did not adequately explain the reasoning for terminating the rule when it blocked it from taking effect in 2017.

{mosads}OMB is allowed under federal law to block “for good cause” any regulation that it has previously passed from taking effect, provided that it can offer an appropriate explanation for the move.

The National Women’s Law Center (NWLC) and the group Democracy Forward, which sued the Trump administration on behalf of the Labor Council for Latin American Advancement in 2017 over the decision, argued that OMB provided no explanation for the decision.

Chutkan agreed, calling the Trump administration’s decision to reverse the rule “arbitrary and capricious,” according to Reuters. The White House did not immediately return a request for comment from The Hill.

The U.S. Equal Employment Opportunity Commission has required for years that employers with more than 100 workers report job titles broken down by race and gender, a rule which the Obama administration expanded in 2016 to include salary and wage data, with the goal of preventing gender- or racial-based disparities in pay.

Business groups including the U.S Chamber of Commerce opposed the rule at the time, arguing that it would not provide pay data in the proper context and would present a costly requirement for large businesses.

Tags Mick Mulvaney Office of Management and Budget wage data
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