Employers Must Report Expanded EEO-1 Data for Prior Years by September 30, 2019
Update: EEOC Announces Intention to Not Renew Expanded EEO-1 Reporting Requirement
Our July 10, 2019 article below reported that a federal district court had reinstated expanded EEO-1 reporting requirements, with covered employers required to submit a “Component 2” report covering 2017 and 2018 pay data by September 30, 2019.
The EEOC has now announced that it does not plan to renew this expanded data collection and reporting requirement in future years in light of its revised estimate of how costly such requirements will be for employers. The EEOC also stated, however, that this decision does not change EEO-1 filers’ obligation to submit Component 2 data for 2017 and 2018 by September 30 of this year.
This announcement will likely trigger legal challenges, and we will issue future alerts regarding the status of the EEO-1 requirements.
July 10, 2019
Following a federal district court’s reinstatement of the EEOC’s expanded EEO-1 reporting requirements, employers who are required to submit EEO-1 reports must now file pay data for 2017 and 2018 by September 30, 2019. The EEOC recently announced that the online filing system for the new pay data information will be available for all filers beginning on July 15, 2019.
Introduction to the EEO-1
The Equal Employment Opportunity Commission (EEOC) requires certain employers to annually report the racial/ethnic and gender composition of their workforce by job category on the Employer Information Report, Standard Form 100 (the “EEO-1”). Specifically, an EEO-1 form must be filed electronically by:
(1) all private employers who have 100 or more employees (as well as by any group of companies with centralized ownership, control, or management which together have 100 or more employees); and
(2) all federal contractors who have 50 or more employees and are prime contractors or first-tier subcontractors who have a contract, subcontract, or purchase order worth $50,000 or more.
As in prior years, the EEO-1 requires covered employers to classify all permanent full-time or part-time employees (including apprentices and trainees) into one of ten categories (executives or senior officials/managers; first-level or mid-level officials/managers; professionals; technicians; sales workers; administrative support workers; craft workers; “operatives”; laborers/helpers; and service workers) and to tally each category’s members by gender and (self-reported) race/ethnicity.
The Expanded Reporting Requirements
In 2016, the EEOC published a notice of its intention to revise the EEO-1 data collection form to include employees’ hours and earnings, and later announced that the new reporting requirements would take effect in 2017. Under the new rule, in addition to the preexisting reporting requirement for gender and ethnicity data (now known as “Component 1”), employers with 100 or more employees must now also report the number of hours their employees worked, and use W-2 wage data over a 12-month period to categorize their employees according to twelve pay “bands” (now called “Component 2”).
However, before the new rules and reporting requirements took effect, the Trump Administration announced that it was staying the new reporting requirements. Several workers’ advocacy organizations filed suit in the United States District Court for the District of Columbia, and on March 4 of this year, that Court vacated the stay, and ordered that the expanded EEO-1 reporting requirements would take effect after all. Accordingly, the expanded EEO-1 reporting requirements are, for now, reinstated. (The Department of Justice has appealed the District Court’s order but the appeal does not stay employers’ obligation to file Component 2 data).
Following the District Court’s order, the EEOC announced that employers must file Component 2 data for calendar years 2017 and 2018 by September 30, 2019. The EEOC recently updated its newly created website for collection of employers’ Component 2 data and announced that the filing system will be open beginning July 15, 2019. In addition, system login information will be sent to filing employers via regular mail and email on July 15.
Employers with 100 or more employees should begin preparing 2017 and 2018 pay data as soon as possible for submission by September 30, 2019. Please do not hesitate to contact any of our attorneys if you have any questions regarding these changes or would like assistance in preparing or submitting the revised EEO-1 Component 2 data.