On September 29, 2016, the Obama administration announced an initiative that required companies with more than 100 employees, and federal contractors with more than 50, to categorize their employees by gender, race, type of work, and place them into one of 12 wage bands.
This means that a company with 120 employees would break down its workforce by gender, race, ethnicity and role and then indicate what wage bracket they were in. If a company has 50 white male workers who do similar work and make a similar amount, then they would group them together.
“Collecting this pay data would help fill a critical void we need to ensure American workers receive fair pay for their work,” said Yang.
By making adjustments to the EEO-1 form — which employers were already required to complete annually — the White House hoped to “encourage and facilitate greater voluntary compliance by employers with existing federal pay laws,” as well as help the government investigate “employers that are unlawfully shortchanging workers based on their gender, race or ethnicity.”