Upcoming Deadline for Employers to Report Gender Pay Gaps
In 2020, Amendment 6 to the Equal Pay for Male and Female Employees Law of 1996 (“Equal Pay Law”) was enacted, which obligates employers employing more than 518 employees to prepare two annual reports specifying the gender wage disparities in the workplace, to publish one report publicly, and to disseminate information to each employee from the internal report about the group to which he belongs according to the groups defined in the aforesaid reports (such as type of employee, type of job, seniority etc.).
The public report for 2024 must be published by June 1, 2025.
Internal report: disclosure of the average monthly wage and other information
According to the guidelines previously published by the Equal Employment Opportunities Commission, the internal report must be based on data collected by the employer, disclose employees’ average monthly wages segmented by gender and specify the average gender wage disparities in each employee group in the workplace. The employer is obligated to retain the data used to prepare the report.
After preparing the internal report, employers are obligated to proactively provide information annually to every employee with regard to the group to which he belongs (according to the groups defined in the internal report), segmented by gender, in order to inform the employee about the status of the gender wage disparities in the group to which he belongs.
Public report on the business website: average monthly gender wage disparities
Employers are also obligated to publicize a public report based on the internal report, including on the employer’s website (if any), disclosing general anonymized data about the average monthly gender wage disparities among its employees (in percentages).
It should also be noted that, in 2023, the Equal Employment Opportunities Commission published recommendations for implementing Amendment 6 to the Law. While these recommendations do not necessarily have binding validity, they are likely to be used by the labor courts as an interpretive tool as the need arises. For our firm’s May 2023 update explaining the key recommendations of the Equal Employment Opportunities Commission, please click here.
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Adv. Eli Beloshevsky is an associate in our firm’s Employment department.
Adv. Netta Bromberg is a partner and Head of the Employment department.
Our Employment department, which is ranked annually by international and local legal directories, has extensive experience in providing comprehensive high-quality legal advice to local and international employers on a variety of complex issues and is at your service.