If you are an EEO-1 filer, you probably already know that you may have an additional reporting requirement this year relative to your existing EEO-1 reporting obligations. Called Component 2 data, the U.S. Equal Employment Opportunity Commission (EEOC) is now requiring most EEO-1 filers to submit compensation data and hours worked as part of their EEO-1 reporting obligation by September 30, 2019.
Individual pay information is not reported. Twelve compensation bands will be used to report a compensation range for each reported employee within existing job categories (which have not changed from the current EEO-1 report) and demographic information. Employers will use Box 1 W-2 earnings when reporting compensation data within the compensation bands.
Employers will also report hours worked for those employees counted during the employer-selected period. Actual hours worked must be reported for non-exempt employees. For exempt employees, employers have the option of providing actual hours worked, i.e., if they maintain accurate records of hours worked, or providing a proxy of hours worked, i.e., 40 hours per week for full-time exempt employees and 20 hours per week for part-time exempt employee multiplied by the number of weeks the employees are employed during the particular EE0-1 reporting year.
The EEOC has accounted that its Component 2 online filing system is now open and EEO-1 filers can begin to file their Component 2 data by entering their data into the confidential and customized online form. As an alternative method, filers may choose to upload a data file via a secure upload. However, the EEOC’s filing system is not yet ready to accept uploads of data until mid-August. This means that any EEO-1 filers planning to submit their data via a data file, cannot yet do so and must wait until that functionality is available in August.
The 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, but due to litigation and a court order staying the new requirement, submission of the additional data was put on hold. Nevertheless, EEO-1 filers were still required to file their existing EEO-1 report without the Component 2 pay data by May 31, 2019.
Per an April 2019 court order, the stay was lifted, and an order was issued to extend the deadline for the pay data reporting to September 30, 2019. Although an appeal of that order has been filed, the notice of appeal does not change the District Court’s order, nor alter the additional filing requirements at this time.
Accordingly, Component 2 data for calendar years 2017 and 2018 must be submitted by September 30, 2019.
Most employers (including federal contractors and subcontractors) must file Component 2 data for 2017 if they have 100 or more employees during a 2017 workforce snapshot period. Similarly, most employers (including federal contractors and subcontractors) must submit Component 2 data for 2018 if they have 100 or more employees during a 2018 workforce snapshot period. The 100-employee threshold is for the employer as a whole and includes employees at all locations.
Federal contractors with 50-99 employees are not required to report Component 2 data (but still have their existing Component 1 reporting obligation).
Federal contractors with less than 50 employees, and private employers with less than 100 employees are not required to file either EEO-1 Component 1 data or Component 2 data.
The EEOC has contracted with NORC, a nonprofit and independent research institution at the University of Chicago to collect the Component 2 data via a web-based filing system. The web-based portal must be used to submit and certify the 2017 and 2018 Component 2 data by the September 30th deadline.
The online filing system is entirely web-based. Data is securely transferred over the internet via the portal. There is no software to download or install. On or about July 15, 2019, the EEOC sent system login information to existing EEO-1 filers via letter and email to the registered EEO-1 email address on record. The system login information includes a User ID and Password needed to access the Component 2 online filing system.
The EEOC has developed a number of resources and detailed instructions to assist employers with their Component 2 filing. These include:
A Sample Form. The sample form is meant to illustrate how the Component 2 data is organized, i.e., by job category, gender, race/ethnicity, and then by salary band and hours worked. This form does not contain the file upload requirements and is not meant to be used for reporting purposes.
Instruction Booklet. This detailed booklet explains who must file, how to file, and when to file. It describes the job categories, pay bands, and defines important terms for Component 2 EEO-1 filing including “compensation” and “pay,” and explains what “hours worked” means and how you calculate hours worked for your nonexempt and exempt employees for each reporting year.
User’s Guide. This 44-page guide provides detailed information about the reporting process including how to log into the portal and step by step instructions as to how to enter Component 2 information into the customized online form.
Fact Sheet. The 2-page document provides a summary of the important information, dates, and requirements for Component 2 filing.
Upload File Specifications. These instructions describe the required file specifications for employers wishing to upload their data files instead of manually entering their data using the online form. Filers who wish to upload their data may prepare their files using these instructions but will not be able to actually upload their data files until the functionality is available in mid-August.
Frequently Asked Questions. The FAQs provide succinct answers to the most commonly asked questions including:
NORC HelpDesk. In addition to the above information that’s available online, the EEOC has also created a HelpDesk that is available to assist employers with individual questions about Component 2 filing or technical issues. The EEOC’s helpdesk is available via email or by phone toll free at 877-324-6214.
For an overview of requirements and tips as to where and how to start to prepare for this filing, please see our previous article. Associated Benefits and Risk Consulting can support your organization’s compliance obligations and assist you with technology solutions to streamline your processes. If you have questions, please contact us.
Janice Pintar has extensive litigation experience in the field of employment law and was a plaintiff’s attorney for nearly thirteen years before becoming an HR Consultant in 2015. She educates and advises human resources professionals and employers on a broad range of
Janice Pintar has extensive litigation experience in the field of employment law and was a plaintiff’s attorney for nearly thirteen years before joining Associated Financial Group’s HR Consultants in 2015. She educates and advises Human Resources professionals and employers on a broad range of employment issues and best practices and costly litigation compliance topics including respectful workplace practices, unlawful harassment avoidance, wage and hour issues, medical leaves and accommodations, as well as federal and state discrimination and anti-retaliation issues. Janice received her undergraduate degree from the University of Wisconsin-Milwaukee, magna cum laude, and her law degree from the University of Wisconsin, cum laude.
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