Payroll, Here Are Your Articles for Wednesday, September 04, 2019
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Important Deadline: EEO-1 Pay Data Due by Sept. 30


Each year, private employers with at least 100 employees (also called "EEO-1 filers") must report the number of employees who work for their business — sorted by job category, race/ethnicity and gender — to the Equal Employment Opportunity Commission. This information is called "Component 1 data." EEO-1 filers had until May 31, 2019, to submit Component 1 data for 2018.

Based on a recent ruling by a federal district court, EEO-1 filers must also report pay information — known as "Component 2 data" — for 2017 and 2018 to the EEOC by Sept. 30, 2019.

In 2016, the EEOC approved a revised EEO-1 report, which requires employers to include Component 2 data in their EEO-1 reporting. However, in 2017, the U.S. Office of Management and Budget (OMB) announced a stay on this requirement, effectively placing the revised EEO-1 report on hold. 

In response to a lawsuit challenging the delay, a federal district court judge vacated the stay — reinstating the requirements for Component 2 data. The judge ordered the EEOC to collect Component 2 data for 2018 by Sept. 30, 2019, plus an additional year's worth of pay data. This additional year's data could be for 2017, which would be due with the 2018 information by Sept. 30, 2019; or for 2019, which would be due by the regular 2020 EEO-1 reporting period. The EEOC had until May 3, 2019, to decide on the year. 

On May 3, 2019, the EEOC officially responded by publishing a rule in the Federal Register, requiring Component 2 data for 2017. 

Component 2 Data Filing Criteria
EEO-1 filers must report Component 2 data for 2017 and 2018 by Sept. 30, 2019. Component 2 data includes hours worked and W-2 Box 1 wages for all employees, broken down by race, ethnicity and gender. When reporting hours for nonexempt employees, employers must use the actual hours worked. For exempt employees, employers should report an estimated 40 hours per week for full-time exempt employees and 20 hours per week for part-time exempt employees.

Component 2 data for 2017 and 2018 can be filed through the EEOC's web-based portal, which will be active by mid-July 2019. 

The Legal Saga Continues
On May 3, 2019, the U.S. Department of Justice filed an appeal, challenging the court orders mandating the collection of Component 2 data. The EEOC website now includes this statement: "The filing of this Notice of Appeal does not stay the district court orders or alter EEO-1 filers' obligations to submit Component 2 data. EEO-1 filers should begin preparing to submit Component 2 data as described above." 

Along with obeying the requirements for Component 2 data, EEO-1 filers should closely monitor the situation for new developments.

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