
Pursuant to an April 25 court order, employers with annual
EEO-1 reporting requirements will now have until September 30, 2019 to provide
the new Component 2 pay data.
Background
As we discussed in our recent update,
the Equal Employment Opportunity Commission (EEOC) requires employers with at
least 100 employees and federal contractors with 50 or more employees and
contracts of $50,000 or more to file annual EEO-1 reports. The EEO-1 report
collects, through its Component 1 requirements, the demographic makeup of the employer’s
workforce by race, gender, ethnicity, and job category. In February 2016, the
EEOC published a federal notice announcing its intention to revise the EEO-1
form to collect pay demographics through a Component 2 requirement. The Office
of Management and Budget (OMB) approved the pay data collection in September
2016, and data collection was set to begin in 2017 and be reported to the EEOC
in March 2018.
However, in August of 2017, under the Trump administration, the
OMB stayed the EEO-1 pay data requirements due to the burdens on employers and
privacy implications. Pay equity advocates filed suit against the OMB in
November 2017, asking for the EEO-1 pay data collection process to move
forward. The U.S. District Court for the District of Columbia granted the
requested relief in early March 2019, vacating OMB’s stay and reinstating the
EEO-1 pay data collection requirements.
April 25, 2019 Decision
On April 25, 2019, the District Court determined that the
deadline for employers to report Component 2 data is September 30, 2019. In
court filings, the EEOC had stated that it was not equipped to collect the
data, but that it could complete the data collection by the September date
using the services of a third-party vendor.
The court also ordered the EEOC to collect a second year of
pay data. The EEOC has until May 3 to decide whether it will collect employers’
2017 data or collect 2019 data in the future. In addition, the EEOC must put a
statement on its website informing employers of the 2018 collection requirement
by April 29.
Implications for
Employers
Covered employers should begin the process of collecting 2018
Component 2 pay data (which includes data on hours worked and pay information
from employees’ W-2 forms by race, ethnicity, and sex) to ensure they can
produce the 2018 pay data by the September 30 reporting deadline. Employers
will need to determine what systems house the relevant information and how they
can pull that together for production. In some circumstances, outside vendors
may be able to assist with meeting the reporting requirement.
Covered employers should also keep an eye out for the EEOC’s
May 3 decision as to whether employers will need to report 2017 pay data or
2019 pay data. In addition, covered employers should keep in mind that they
still must submit the 2018 Component 1 data of the EEO-1 report (e.g., employee
data by job category, race, sex, and ethnicity) by May 31, 2019.
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