Compliance Stuff

On June 30, 2026, the U.S. Equal Employment Opportunity Commission announced that it had rescinded two documents relating to permissible affirmative action 1 under Title VII of the U.S. Civil Rights Act: (1) its regulatory guidelines 2 on “appropriate” affirmative action under the statute; and (2) section 607 of its Compliance Manual, which addressed those guidelines and the agency’s enforcement positions with respect to permissible affirmative action and affirmative action plans.  Both the guidelines and the related portion of the Compliance Manual explained that voluntary affirmative action plans were only permitted under federal equal employment opportunity laws when designed to remedy past or present discrimination or to address manifest imbalances in traditionally segregated job categories and carefully structured to avoid unlawfully disadvantaging other employees. The documents emphasized that to be lawful, a plan had to be temporary, flexible, and narrowly tailored, and ...

A cautionary tale for employers.  EDITOR’S NOTE: Our  Affirmative Action Alert  blog has been re-titled  EEO Compliance Dispatch .   Many companies proactively analyze employee compensation to ensure that any disparities based on race and sex can be explained. This practice is advisable for many reasons: To eliminate or reduce potential liability for pay discrimination by identifying and correcting unexplained pay differentials. To increase employee morale and trust in the organization. To demonstrate accountability to shareholders and others. To develop robust compensation strategies and programs. Pay analyses that are prepared by or for counsel for the purpose of obtaining legal advice are generally covered by the attorney-client privilege. This privilege may be waived, however, if the confidentiality of the communication is not maintained by the client. One drawback to conducting a preventive pay equity analysis – even with the involvement of an atto...