By: Leah K. Sell, Esq.
On July 15, 2019 the portal for submission of EEO-1 Component 2 Pay Data Reporting opened. All employers, including federal contractors, with 100 or more employees must submit Component 2 for both calendar years 2017 and 2018 by September 30, 2019. Component 2 of the EEO-1 regards pay data based upon certain protected classes including sex and race. The pay data is measured using 12 compensation bands across 10 job categories.
What is an EEO Report?
The Equal Employment Opportunity Commission (EEOC) collects Reports based upon certain demographic information from large employers and federal contractors. EEO reporting is designed to collect data on employers and employees to better understand employment equality issues and is used in research and enforcement of the EEOC’s policies. There are several EEO report types. EEO-1 is one report type and has several Components. Each Component collects different data and has various reporting requirements based upon employer size and type.
Why didn’t employers have to file before?
EEO-1 Component 2, concerning pay data, had been suspended, meaning that employers did not have to complete this report. However, the D.C. Circuit District Court’s recent decision in National Women’s Law Center, et al., v. Office of Management and Budget, et al., Civil Action No. 17-cv-2458 (D.D.C.), required the EEOC to enforce data collection and analysis of Component 2, for both calendar years 2017 and 2018. The Department of Justice has appealed the decision but there is no stay on the order requiring data collection pending the appeal.
What does this mean for employers?
If an employer had more than 100 employees in the snapshot period of October 1 to December 31 of 2017 or 2018, the employer will need to complete Component 2 of the EEO-1 for that applicable year or years
This will involve selecting a pay period in the snapshot period and then breaking down the required data for the employees during that pay period. The data required to be reported will include each of 12 compensation bands the employee was a part of, based upon Box 1 of the employees W-2 for that calendar year. The employer will also have to report the total hours worked for employees. This data is reported according to 10 job categories and a matrix of certain demographic information, including sex and race.
Given the breadth of information and that two reporting years that are required, employers should begin planning early to complete Component 2 by the September 30, 2019 deadline.
If you have questions regarding whether you must file or what to file, please contact Leah Sell at firstname.lastname@example.org or 412-261-1600. Leah is an associate at Leech Tishman and is based in the firm’s Pittsburgh, PA office. Leah is a member of the firm’s Employment, Corporate, and Litigation practice groups, as well as the Medical Cannabis and LaunchPad subgroups.
Leech Tishman’s Facebook Page: https://www.facebook.com/leechtishman
Leech Tishman’s Twitter: https://twitter.com/LeechTishman
Leech Tishman’s Company Page on LinkedIn: https://www.linkedin.com/company/leech-tishman
Leech Tishman Fuscaldo & Lampl is a full-service law firm dedicated to assisting individuals, businesses, and institutions. Leech Tishman offers legal services in alternative dispute resolution, aviation & aerospace, bankruptcy & creditors’ rights, construction, corporate, employee benefits, employment, energy, environmental, estates & trusts, family law, government relations, immigration, insurance coverage & corporate risk mitigation, intellectual property, internal investigations, international legal matters, litigation, real estate, and taxation. Headquartered in Pittsburgh, PA, Leech Tishman also has offices in Chicago, Lakewood Ranch, FL, Los Angeles, New York and Wilmington, DE.