News & Announcements

Updates on the EEOCís Collection of Pay Data

Posted Tuesday, May 14, 2019 6:26 am

As announced last week, employers must submit to the Equal Employment Opportunity Commission (“EEOC”) Component 2 pay data for calendar years 2017 and 2018 by September 30, 2019.  This article provides updates from the EEOC and information on what constitutes Component 2 data.

EEOC’s Status Report

The EEOC filed its first Report of Steps to Implement the EEO-1 Component 2 Data Collection, as required by the Court’s April 25 Order.  According to the Report:

  • The EEOC contracted with NORC at the University of Chicago to collect Component 2 data for 2017 and 2018.
  • The EEOC is working with NORC to launch an email and phone help desk to assist filers with questions in the next three weeks.
  • The EEOC is on track to open the Component 2 data collection from July 15 through September 30.

Notice of Appeal

The EEOC updated its initial website announcement by adding the following:

On May 3, 2019, the Department of Justice filed a Notice of Appeal in National Women's Law Center.  The filing of this Notice of Appeal does not stay the district court orders or alter EEO-1 filers’ obligations to submit Component 2 data.  EEO-1 filers should begin preparing to submit Component 2 data as described above.

In other words, things could change, but employers should be preparing to submit Component 2 data between July 15 and September 30.

Component 2 Data

The EEOC has not yet issued any new guidance on what to expect when it begins collecting Component 2 data in mid-July.  The Court’s March 4, 2019 Order, however, ordered the reinstatement of the EEO-1 form previously approved in 2016.  Presumably, this would mean the guidance issued in connection with the 2016 form would be applicable to the current situation.  Assuming that is the case, the Component 2 data to be reported includes summary pay data and aggregate hours worked.

Summary Pay Data

Employers would report the total number of employees (part-time and full-time) in 12 pay bands for each of the 10 EEO-1 job categories.  For each pay band, the employer would enter the number of employees whose pay (as reported in Box 1 of their W-2 form) for the calendar year falls in that band.  Employers would report summary data; NOT individual pay or salaries.

Aggregate Hours Worked

Employers must report the total hours worked by all employees in each pay band.  For non-exempt employees, employers should report the actual hours worked.  For exempt employees, employers may report either (1) actual hours worked or (2) 20 hours per week for each part-time employee and 40 hours per week for each full-time employee, multiplied by the number of weeks employed that year.

Covered Employers

Employers that have 100 or more employees will be required to submit Component 2 data.  Covered federal contractors and subcontractors with 50-99 employees are required to submit Component 1 data, but not Component 2 data.  Federal contractors and subcontractors with 49 or less employees, and employers without federal contracts with 99 or less employees, are not required to complete the EEO-1 form.

For more information, click here for the press release issued by the EEOC on September 29, 2016, and click here for the EEOC’s “What You Should Know about EEOC’s Proposal to Collect Pay Data,” which was issued in or around July 2016.  Unfortunately, the 2016 sample revised EEO-1 form no longer exists on the EEOC’s website.

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