In addition to their normal filing due on May 31, 2019, EEO-1 filers must now also file information containing employee pay data by September 30, 2019. If you are (1) a business with at least 100 employees or (2) a federal contractor with at least 50 employees and a contract with the federal government of $50,000 or more (“EEO-1 Filers”), you are likely already aware that you must file the Employer Information Report EEO-1 Form with the Equal Employment Opportunity Commission (“EEOC”). The EEOC uses information from this form about the number of women and minorities employed (“Component 1 data”) to support its civil rights efforts.
The EEO-1 Form was revised during the Obama administration to include “Component 2” work hours and pay data, which proponents said would help narrow systemic pay gaps based on race, ethnicity, and sex. These changes were suspended in 2017 by the Trump administration, but this suspension was lifted by the U.S. District Court in D.C. on March 14, 2019. The EEOC recently announced that by September 30, 2019, EEO-1 Filers must report Component 2 wage information from Box 1 of the IRS Form W-2 and total hours worked for all employees by race, ethnicity, and sex within 12 proposed pay bands from 2017 and 2018. (The May 31, 2019 deadline for reporting 2018 Component 1 data remains in place.)
On May 3, the Office of Management and Budget appealed the District Court’s reinstatement of the pay data reporting obligation. However, the EEOC stated in a court filing and on its website that this appeal does not stay the District Court orders or alter EEO-1 Filers’ obligations to submit Component 2 data by September 30.
The EEOC has said it expects to make the Component 2 portal available to EEO-1 Filers by July 15 and to provide training to EEO-1 Filers prior to that date. The EEOC also plans to launch an email and phone helpdesk by the end of May to assist EEO-1 Filers with questions and concerns.
If you are one of the more than 60,000 employers from whom the EEO-1 Form is required, now is the time to prepare for the pay data collection deadline.
EEO-1 Filers should consider taking the following actions now:
- Verify that your human resource information system (or outside payroll and/or timekeeping provider) can produce the demographic, pay, and work hours information needed for the report; and
- Use this data collection as an opportunity to conduct a pay equity analysis. By doing so, you may be able to address a pay inequity issue before the EEOC comes knocking.