EEOC Provides New Guidance on EEO-1 Pay Data Reporting

The Equal Employment Opportunity Commission (EEOC) has updated its guidance for how to submit EEO-1 Component 2 compensation data for fiscal years 2017 and 2018. The EEOC’s web-based system to submit this information will be available July 15, 2019, and employers have until September 30, 2019 to do so, under a deadline set by a federal judge’s ruling in April. The EEOC has long required employers with 100 or more employees submit EEO-1 data to report on their number of employees categorized by race, gender, ethnicity and job category – Component 1 data. This requirement also applies to federal contractors with more than 50 employees and federal contracts of at least $50,000. Component 2 pay data involves asking for employees’ hours worked and pay information from W-2 forms using the same categories as the Component 1 data. In 2017, the federal government opted not to gather Component 2 data, leading to a lawsuit by the National Women’s Law Center and other employee advocacy groups to compel the EEOC to collect the data. The EEOC’s reporting portal includes frequently asked questions about filing requirements for Component 2 pay data, such as: Who must submit EEO-1 2017 and 2018 Component 2 compensation data? When do employers count their employees? How will data about employees’ sex and race or ethnicity be reported on the EEO-1 Component 2 form? The agency notes that employers only need to count their employees (both full-time and part-time) during a “workforce snapshot pay period” between October 1, 2017 and December 31, 2017, and October 1, 2018 and December 31, 2018.