There’s a new deadline that employers should take note of for submitting pertinent information to the Equal Employment Opportunity Commission (EEOC).
Here’s everything you need to know.
As you’re likely aware, the EEOC now requires employers to disclose equal pay data on its Employer Information Report (EEO-1). The equal pay data is known as Component 2 of the EEO-1 and has been the subject of recent litigation.
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Employers required to file EEO 1 reports are only those with 100 or more employees or, employers (or sub-contractors) who have government contracts of at least $50k with 50 or more employees.
The legal battles.
For some background, the EEO-1 form was revised during President Barack Obama’s administration to add Component 2 data, however the provisions were suspended in 2017 by President Donald Trump’s administration.
The National Women’s Law Center challenged the Trump administration’s hold, and on March 4, Judge Tanya Chutkan lifted the stay.
Then, on March 18, the EEOC opened the portal for employers to submit EEO-1 reports without including the pay data information.
On April 25, 2019, Chutkan issued an order in National Women's Law Center, et al., v. Office of Management and Budget, et al., Civil Action No. 17-cv-2458 (D.D.C.) that will require employers to submit this Component 2 information by Sept. 30, 2019. The judge ruled in the order that the EEOC must: “immediately take all steps necessary to complete the EEO-1 Component 2 data collections for calendar years 2017 and 2018 by Sept. 30, 2019.” Note that this is later than the deadline for other Component 1 EEO-1 data, which is due May 31, 2019.
The EEOC says it will notify filers of the precise date the survey will open as soon as possible.
What is required in Component 2 of the EEO-1?
According to SHRM, the revised EEO-1 form requires employers to report wages from Box 1 of Forms W-2. It also requires reported total hours worked for all employers by race, ethnicity, and sex within 12 proposed pay bands.
For nonexempt employees, the reported hours worked should show actual hours worked. For part-time exempt employees, it should show an estimated 20 hours per week. For full-time exempt, it should show 40 hours per week.
The order took effect on April 25, but the government may appeal the case. Stay tuned for further details.
An attorney suggested in SHRM that it’s a good idea for employers to start looking at 2018 data now to conduct an initial assessment of their processes.