On April 25, the U.S. District Court for the District of Columbia ruled that covered employers will be required for the first time to submit detailed data on employee compensation and hours worked (or Component-2 data) to the Equal Employment Opportunity Commission as part of their annual EEO-1 form submission by Sept. 30, 2019. The court ordered EEOC to collect this data for calendar year 2018. Covered employers should be aware that Component-1 data is still due by May 31, 2019.
According to a notice posted on the EEOC website:
-EEO-1 filers should begin preparing to submit Component 2 data for calendar year 2018 by Sept. 30, 2019. The EEOC expects to begin collecting this data for calendar year 2018 in mid-July, 2019, and will notify filers of the precise date the survey will open as soon as it is set.
-Additionally, as a result of the court vacating the Office of Management and Budget’s stay of Component-2, the EEOC will also collect Component-2 data for either calendar year 2017 or calendar year 2019. The agency plans to post an additional notice by May 3, 2019, announcing its decision.
In general, private employers with 100 employees or more that are subject to Title VII of the U.S. Civil Rights Act of 1964 are required to file Form EEO-1 (including both traditional Component-1 data, which reports workforce demographics by job category, race, ethnicity and gender, and now the new Component-2 data). Federal contractors that are otherwise required to file Form EEO-1 will only be required to file Component-2 data if they have 100 or more employees (covered federal contractors with 50-99 employees are required to file Component-1 only). Component-2 includes annual W-2 (box 1) compensation sorted by pay band and annual hours worked. For additional details, see ABC general counsel Littler Mendelson’s analysis.
ABC was active in efforts to reverse the court’s March decision or, at minimum, extend the time period for employers to comply with any new Component-2 pay data requirement. While the new order extends the due date from May 31 to Sep. 30, there remain serious questions as to whether the court overstepped its authority by ordering EEOC to collect the information at all. An appeal of the court’s decision remains a possibility.
The submission of Component-2 data was initiated during the Obama administration. However, under the Trump administration, OMB blocked the EEOC from requiring employers to submit any compensation data. In March 2019, the D.C. District Court ordered the OMB stay to be vacated.
This article is intended for informational purposes only and does not constitute legal advice or opinion.