Update: Per an April 2019 court order, the deadline for submitting the Component 2 pay data to the EEOC will be September 30, 2019. It is expected that the EEOC will publish guidance during the summer regarding the submission of this data. In early May, 2019, the EEOC announced that EEO-1 filers will have to submit both 2017 and 2018 Component 2 pay data by September 30, 2019. That is two years of data instead of one. EEO-1 filers are advised to start collecting both years’ pay data to prepare for the September deadline.
In 2016, the Equal Employment Opportunity Commission (EEOC), expanded the reporting obligations for employers by requiring the addition of pay data to the Employer Information Report (EEO-1), in an effort to better combat pay discrimination. Many employers breathed a sigh of relief in 2017 when a stay was issued delaying the requirement to complete the expanded reporting.
However, in April of 2019, a federal court issued an order extending the deadline for employers to submit the Component 2 pay data to September 30, 2019. Component 1 data — employee counts reported by race, ethnicity, and sex — is still due May 31, 2019.
As of the date of this article, we are awaiting further EEOC guidance regarding filing Component 2 pay data. Employers should continue moving forward with reporting Component 1 data by the May 31, 2019 deadline.
Employers should begin gathering their 2018 pay data information as the September 30 deadline is rapidly approaching.
The U.S. Equal Employment Opportunity Commission (EEOC) was established to enforce federal laws that prohibit discrimination against employees and job applicants on the basis of their race, color, religion, sex, national origin, age, disability, or genetic information. The existing EEO-1 report requires reporting of demographic information about the employer’s workforce. On July 14, 2016, the EEOC proposed the addition of pay data to the EEO-1 report as an additional strategy to fight against persistent pay discrimination. The EEOC’s goal in collecting pay data is not only to focus their efforts, but also to help employers evaluate their own compensation strategies and trends to prevent pay discrimination.
Private employers with 100 or more employees or are part of a controlled group of employers with 100 or more employees are required to report both Component 1 and Component 2 data. Federal contractors with 50-99 employees and at least $50,000 in contracts also need to report Component 1 data but do not need to report Component 2 data. For more information, see the How-to guide from the EEOC.
While the main focus of this article is the changes to the EEO-1, there are a number of things that will remain the same:
Items that are changing on the EEO-1:
Learn more about the EEO-1 and filing process
The EEOC has numerous FAQs about the filing process, including how to register if you are newly subject to this reporting requirement. It is important to understand all of the types of EEO-1 reports you will need to complete and how to file them.
Determine how you will report hours for exempt employees
If you are already tracking the hours of your exempt employees, there is nothing more you need to do at this time. However, many organizations do not track the hours their exempt employees work. For those employers, you will need to decide which of the following options is best for your organization:
Review existing processes
For many employers, EEO-1 Reporting has been a strictly HR affair. Now that pay and hours data will be required, it may make sense for your payroll department to be involved as well.
Create or update the list of job titles in your organization and the equivalent EEOC job category
In order to complete the reporting consistently, it may be helpful to first create a list of the job titles in your organization and then assign the appropriate EEOC job category for each one. Even if you have reported in the past and created a list, you will want to review the list each year to see if there are any updates that need to be made, for example, new job titles that need to be added and an EEOC job category assigned.
Begin conversations with your technology vendor(s)
If you have technology vendors that you have partnered with for Recruiting, Applicant Tracking, Onboarding, HRIS, time and attendance, and/or payroll needs, begin reaching out to the vendor(s) to ask how they can support your EEO-1 reporting needs. If you have multiple vendors able to assist with your EEO-1 obligation, you will need to figure out which will be the best partner for your organization. View our previous article on EEO-1 reporting for a helpful list of questions that you will want to ask them.
Complete an audit of your data
Ensure that all of the data needed for the report to be completed has been collected and is accurate. It is also important to document where the data can be retrieved when it is time to complete the report again next year. For example, if the demographic information is in paper files, the hours worked data is in your time and attendance system, and employee’s pay information is in the payroll system, it may save time in future years if this is documented now.
Associated Benefits and Risk Consulting can support your organization in your compliance efforts by helping you understand your obligations, partner with technology solutions to streamline your processes, and evaluate your existing insurance policies to reduce your risk exposure.
As a Business Line System Administrator, Karen assists our clients in maximizing the value of the HSA and TPA suite of services through the optimization of technology.
As a Business Line System Administrator, Karen is responsible for the day-to-day operations of our technology solution and supporting processes for our HSA and TPA suite of services. Additionally, she helps implement system enhancements that allow Associated Benefits and Risk Consulting to provide innovative features that help organizations and individuals meet their goals.
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