The White House this week set aside a rule crafted by the Obama White House to force businesses to disclose what they are paying people, information the Clinton administration, which didn’t happen, would have used to begin forcing equal pay.
From the Wall Street Journal:
A long-time progressive goal has been to use charges of a gender pay gap to begin dictating salaries in the private economy. This week the Trump Administration halted an Obama Administration step toward that end.
The Office of Management and Budget on Tuesday stayed an Equal Employment Opportunity Commission (EEOC) rule dealing with a bureaucratic form known as EEO-1. The old EEO-1 required federal contractors and any company with more than 100 employees to submit data about their workforces—including breakdowns by race, ethnicity, gender and job category. In 2016 Team Obama added a demand for data on pay, effective March 2018.
The rule is a typical end-run around Congress, which refused to enact President Obama’s Paycheck Fairness Act that would have enabled such wage-data collection.
The Trump OMB cited the exorbitant cost and hassle of compliance for staying the rule, and that’s reason enough. The old EEO-1 form required about 180 pieces of information, while the Obama form increased that 20-fold to 3,660 data points per report.
The Obama EEOC said the rule would cost about $50 million a year and 1.9 million hours to comply. But a Chamber of Commerce survey found the direct compliance costs alone would be closer to $400 million and eight million hours of labor. Add indirect overhead and annual costs jumped to $1.3 billion.
There are many reasons women earn less than men – few of them having to do with discrimination – including the careers they choose and decisions to leave the workforce to have children. Discrimination should be litigated on a case-by-case basis, not via socialist edict.
And BTW, add $1 billion to businesses costs while forcing them to increase salaries just because people are of a certain gender results in job losses, for women and for men.