EEO-1 Pay Data Update: EEOC Illuminates Process for New Reporting Requirements

The July 15 launch date for the new Component 2 EEO-1 Compensation Data Filing System (Component 2 EEO-1 portal) is fast approaching, and the Equal Employment Opportunity Commission (EEOC) recently provided materials regarding the submission process. On July 1, the EEOC updated its Component 2 EEO-1 website with:

• A sample form.
• A fact sheet.
• Instructions for submitting the Component 2 EEO-1 Report.
• Additional reference documents, including Frequently Asked Questions.

Takeaways From the Sample Form

According to the EEOC-provided sample form, the Component 2 EEO-1 portal will be organized into two charts to collect the data: one chart by total number of employees and one chart by the total number of hours worked by employees in the last year.

Within each chart, compensation data is then identified by employees’ gender, race/ethnicity, EEO-1 job category and salary compensation band. There are 10 EEO-1 job categories and 12 salary compensation bands within each job category. Employers should consult each employee’s earnings reported in W-2 Box 1 to select a salary compensation band for an employee. Consistent with EEO-1 Component 1 data, employers must first invite employees to self-identify their race/ethnicity. If an employee declines to self-identify, however, an employer is permitted to consult with employee-provided information during the onboarding process or the employer’s visual observation.

Updates and Deadlines for Data Submission

1. Employers, including federal contractors, with 100 or more employees must submit Component 2 EEO-1 W-2 and hours worked data (Component 2 EEO-1 data) for calendar years 2017 and 2018 by September 30, 2019 via the Component 2 EEO-1 portal, which is expected to open on July 15, 2019.
   1. In assessing the 100-employee threshold, employers must consider their headquarters and all locations or establishments.
   2. Multi-establishment companies must report Component 2 EEO-1 data for all their establishments, including those with fewer than 100 employees.
2. Covered employers must select a pay period between October 1 and December 31 of the 2017 and 2018 reporting years – referred to as the workforce snapshot period – for the reporting of Component 2 EEO-1 data.
   1. Notably, employers are not required to submit the same workforce snapshot period for both reporting periods.
   2. Component 2 EEO-1 data must be reported for employees who resign or are terminated before December 31 of the applicable reporting year, but who were employed during the employer-chosen workforce snapshot period.

Next Steps

The University of Chicago’s National Opinion Research Center (NORC) will distribute User IDs to companies for the Component 2 EEO-1 portal by letter and via email. Therefore, employers should monitor their mail and email for their login credentials. In the meantime, Faegre Baker Daniels will continue to review and analyze EEOC-issued materials and issue updates.