The Equal Employment Opportunity Commission (EEOC) and its contractor issued long-awaited resource documents on July 1 on how to submit EEO-1 Component 2 compensation data for fiscal years 2017 and 2018. The web-based portal for submission of the Component 2 data will be active on July 15, 2019. The resource documents include a sample EEO-1 form showing how the online portal will be organized to collect the Component 2 data, instructions for submitting the Component 2 data via the Component 2 EEO-1 Online Filing System, responses to frequently asked questions, important deadlines and definitions, and other information and materials to support filing.
For over 50 years, the EEOC has required employers with more than 100 employees to report the number of their employees by sex, race/ethnicity, and job category through its Employer Information Report, more commonly known as the EEO-1. In February 2016, the EEOC published a notice in the Federal Register announcing its intention to revise the EEO-1 data collection and begin collecting pay data as well. The revised EEO-1 form requires employers to report W-2 wage information within 12 pay bands and total hours worked for all employees by sex, race/ethnicity, and job category.
The Office of Management and Budget (OMB) approved the pay data collection in September 2016. The collection of pay data was to begin in 2017 with the first pay data reports (for 2017) due in March 2018. In August 2017, however, OMB reversed course and told EEOC it had decided to initiate a review and stay of the pay data collection due to concerns that “some aspects of the revised collection of information lack practical utility, are unnecessarily burdensome, and do not adequately address privacy and confidentiality issues.”
In November 2017, pay equity advocates initiated litigation seeking vacation of the stay and reinstatement of the pay data collection requirements. The US District Court for the District of Columbia granted this request, and Judge Tanya Chutkan ordered the EEOC to collect employer pay data by September 30, 2019. The US Department of Justice has filed a notice of appeal with the DC Circuit Court.
The EEOC and NORC at the University of Chicago, the entity with which EEOC has contracted to collect the Component 2 pay data, released resource documents on July 1 detailing the specifics of how employers must submit the data. Below are the key takeaways from the resource documents. For more detailed information, please refer to the documents themselves.
Employers with 100 or more employees must report employee compensation data for fiscal years 2017 and 2018. Compensation data includes W-2 wage information and hours worked, broken out by gender, race/ethnicity, and job category. Employers must report this data for ALL full-time and part-time employees who were employed during the “workforce snapshot period,” an employer-selected pay period between October 1 and December 31 of the reporting year. The Component 2 EEO-1 Online Filing System Sample Form illustrates how the data will be collected.
Employers should familiarize themselves with the resource documents posted on the NORC website and start pulling their compensation data together consistent with the guidance provided in those documents. If employers have any questions, they can contact the NORC Component 2 Help Desk at +1.877.324.6214 or EEOCcompdata@norc.org.
If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers:
Michael S. Burkhardt
A. Klair Fitzpatrick
W. John Lee
Sharon Perley Masling
Grace E. Speights