EEO Pay Data Collection Update: It is Time to Comply

Article written by BrownWinick 2019 Summer Associate, Mariah Kauder

In 2017, the federal government suspended collection of Component 2 data from employers subject to EEO-1 reporting requirements. Component 2 data includes employee hours worked and pay information categorized by job type, race, ethnicity, and sex.  Following a contentious legal battle 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.), the Equal Employment Opportunity Commission (EEOC) is requiring Component 2 data be submitted by September 30, 2019. This includes data from calendar years 2017 and 2018.

The Component 2 reporting requirement applies to all private employers, including federal contractors, with at least 100 employees. In addition, companies affiliated through common ownership or centralized management with other entities that bring the total number of employees up to 100 or more are also required to participate. Federal contractors with at least 50 employees and a federal government contract of $50,000 or more continue to be required to complete Component 1 of the EEO-1 form. However, this distinction does not apply to Component 2 reporting. The EEOC requires that submissions come through either the Component 2 EEO-1 Online Filling System or as an electronically transmitted data file. The online filing system became available on July 15th. Instructions for submission can be found on the EEOC’s website.

According to the EEOC, the information is used to inform civil rights enforcement and track employment patterns. Certain advocates of the data collection exercise contend that it will enable the EEOC to better identify and correct pay discrimination, while others feel it is just another administrative burden. Either way, the time is now for employers to identify where this information is stored and begin collecting it in order to meet the September 30th reporting deadline.

If you have questions about any of the information discussed above, please contact one of BrownWinick’s Employment and Labor attorneys.