EEO-1 Component 2 Reporting for 2017 AND 2018 is Due September 30, 2019

The Equal Employment Opportunity Commission (EEOC) recently issued reinstatement of EEO-1 expanded data collection requirements and posted notice on its website that EEO-1 filers are required to submit Component 2 data for calendar years 2017 AND 2018 by September 30, 2019. (EEO-1 filers include employers with one hundred or more employees as well as certain contractors with more than fifty employees.) This has been an ongoing issue since the requirement to collect Component 2 data was implemented in 2016, and the Office of Management and Budget’s (OMB) attempt to block its implementation in 2017. As previously reported, in Nat’l Women’s Law Ctr. v. Office of Mgmt. & Budget, a federal judge in the D.C. Circuit Court stated that the OMB failed to demonstrate good cause for staying the release of the updated EEO-1 report form.

Component 2 data includes W-2 pay data and hours worked, and must be reported according to employee sex, ethnicity, and race and job category. Although no instructions have yet been issued by the EEOC, the EEOC’s Final Comment Request on revising the EEO-1 form described the Component 2 data as follows:

• W-2 pay data falling under the following 12 pay bands:

1. $19,239 and under
2. $19,240 – $24,439
3. $24,440 – $30,679
4. $30,680 – $38,999
5. $39,000 – $49,919
6. $49,920 – $62,919
7. $62,920 – $80,079
8. $80,080 – $101,919
9. $101,920 – $128,959
10. $128,960 -$163,799
11. $163,800 – $207,999
12. $208,000 and over

• Total hours worked in the applicable year: The EEOC looked to the Fair Labor Standards Act’s (FLSA) definition the term “hours worked,” which includes “all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal activity of the workday to the end of the last principal activity of the workday.” For non-exempt employees, employers should review time records for all employees for the applicable year period. For exempt employees, employers will likely have the option to: (1) Report a proxy of 40 hours per week for full-time exempt employees, and 20 hours per week for part-time exempt employees, multiplied by the number of weeks the individuals were employed during the EEO-1 reporting year (e.g., 2080 hours for a full-time, exempt employee employed for a full year); or (2) provide actual hours of work by exempt employees during the EEO-1 reporting year if the employer already maintains accurate records of this information.

The EEOC expects to begin collecting Component 2 data in mid-July 2019, and will notify filers of the precise date the survey will open as soon as it is available.

Component 1 data is still due May 31, 2019. Specifically, EEO-1 filers must still report 2018 data on race, ethnicity, and sex by job category by that date.

To complicate matters further, the EEOC recently appealed the federal district court’s ruling. Until the Court of Appeal takes any action, the current deadlines still stand. Applicable employers should begin collecting the requested data as soon as possible to prepare for the reporting deadline.