Per a Federal order, the Equal Employment Opportunity Commission has announced that EEO-1 pay data for 2017 and 2018 must be submitted by September 30th of this year, which means covered businesses must submit employee pay data and hours sorted by job categories, race, ethnicity and sex (referred to as Component 2 data).
On April 25th, the U.S. District Court for the District of Columbia ordered the EEOC to collect two years of EEO-1 Component 2 data by September 30th. While the Court’s order required the collection of data for 2018, it provided an option to the EEOC to collect 2019 data in 2020 in lieu of collecting 2017 data this year. However, last Friday the EEOC announced that it would require employers to submit data for both 2017 and 2018 by the September 30th deadline. While the Department of Justice has appealed the Court’s order requiring the collection of pay data, the EEOC has issued a statement informing employers that this appeal does not impact employers’ obligations to submit the required pay data by the deadline.
The EEOC first announced plans to collect employee pay data (in addition to annual EEO-1 reports filed by employers) in 2016. However, in 2017, the current administration put a stay on the EEOC’s plans, indicating that this requirement was overly burdensome on employers, and it was unclear if/when employers would have to provide the additional pay data. Now, as a result of the Court order and the EEOC decision, covered businesses – those with 100 or more employees or contractors with 50 or more employees and a federal contract of at least $50,000 – must start gathering and sorting the necessary data to make the required submissions. The EEOC has reported that the collection portal through which information can be submitted will be open in mid-July, with further instructions to follow.
In addition, while covered employers should begin collecting the Component 2 data as soon as possible, it is also important that employers understand that nothing in the Court’s order changes their existing obligation to make their annual EEO-1 submissions (i.e., Component 1 data) by May 31st.
Please contact us if you have any questions regarding these changes, or would like to discuss this topic further.
The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.
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