The White House will not require businesses to start gathering data about how they pay workers of different ethnic groups, genders and races, according to The Wall Street Journal.
The Journal reported Tuesday that President Trump’s administration will halt the implementation of a previously-planned rule on the topic, arguing it burdens employers.
Former President Barack Obama’s administration proposed the data-collection requirement in 2016 as part of its efforts to address pay disparities among workers of different groups.
Tuesday’s White House announcement comes before the rule required businesses to begin reporting their pay data for the first time this spring.
“It’s enormously burdensome,” Naomi Rao, administrator of the Office of Information and Regulatory Affairs (OIRA).
“We don’t believe it would actually help us gather information about wage and employment discrimination,” added Rao, whose agency analyzes the cost of federal regulations and rules.
The Obama-era proposal directed the Equal Employment Opportunity Commission to start collecting pay and wage data from certain private employers and federal contractors.
The private employers impacted would have had 100 or more employees, while the federal contractors affected would have had 50 or more employees.
The proposal would have effectively expanded the range of data employers were mandated to report starting this year on a form titled the EEO-1.
The EEO-1 has been utilized for collecting information on the gender and racial makeup of the U.S. workforce for decades, but the document has not analyzed how different groups are paid.
Obama’s administration claimed that the directive would have better helped the Equal Employment Opportunity Commission (EEOC) to analyze and fight pay discrimination.
The White House maintains that the new data desired by the rule is too voluminous to comply with the federal Paperwork Reduction Act.
The Journal reported that some White House officials also say they are doubtful that significant findings about pay discrimination could be discerned within the new data.