Component 2 EEO-1 Online Filing System Update

As described in our previous “EEO-1 Component 2 Data Update” alert, the Employer Information Report EEO-1––also known as the EEO-1 Report––is required to be filed annually by covered employers with the US Equal Employment Opportunity Commission’s (EEOC) Office of Enterprise Data and Analytics’ Employer Data Team.

Covered employers were required to file the EEO-1 Report for calendar year 2018 by May 31, 2019. However, in light of a recent decision in National Women’s Law Center, et al., v. Office of Management and Budget, et al., there will be an additional filing requirement for calendar years 2017 and 2018. EEO-1 filers must submit Component 2 data (compensation data) for calendar years 2017 and 2018 by September 30, 2019.

In this regard, the EEOC has contracted the National Opinion Research Center (NORC) at the University of Chicago to collect the Component 2 data for both years. NORC describes itself as “an objective non-partisan research institution that delivers reliable data and rigorous analysis to guide critical programmatic, business, and policy decisions.” As of July 15, the filing system to submit the Component 2 EEO-1 Report for 2017 and 2018 submission is available.

Required filers may use employment figures from any pay period in October through December in each calendar year––the “workforce snapshot.” For the selected workforce snapshot, employers must report on all full- and part-time employees. A sample Component 2 EEO-1 pay data form can be accessed here.

The first part of the Component 2 EEO-1 pay data form requires employers to place each employee in the workforce snapshot into one of the following job categories:

1. Executive-/senior-level officials and managers
2. First-/mid-level officials and mangers
3. Professionals
4. Technicians
5. Sales workers
6. Administrative support workers
7. Craft workers
8. Operatives
9. Laborers and helpers
10. Service workers

These are the same job categories employers were required to use previously.

Further, employers are required to place each employee into race/ethnicity categories by sex, with male and female as the only available options. The race/ethnicity categories are composed of two groups: Hispanic or Latino and Non-Hispanic or Latino. The Non-Hispanic or Latino group is divided into the following categories:

1. White
2. Black or African American
3. Native Hawaiian or Pacific Islander
4. Asian
5. Native American or Alaska native
6. Two or more races

Again, just like the job categories, these race/ethnicity categories are identical to previous EEO-1 reports.

The new Compensation Data requirements mandate that the employer must place each employee into one of the following 12 salary compensation bands for the workforce snapshot reported:

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

Employers must report W-2 Box 1 earnings for the year for all employees identified in the workforce snapshot by assigning them to the appropriate pay band.

Next, employers must report the hours worked for the year for all employees in the workforce snapshot by job category, pay band, and race/ethnicity. Hours worked are reported as an aggregate value for each job category and pay band, representing the total number of all hours worked that year by all employees reported in that job category and pay band.

Employees classified as non-exempt from the minimum wage and overtime requirements under the Fair Labor Standards Act (FLSA) should have reported their actual hours worked for the reporting year. Employees considered exempt from the minimum wage and overtime requirements under the FLSA may have reported hours as either “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 or “actual hours of work by exempt employees if the employer already maintains records of this information.”

Employers who fail to properly and timely file the Component 2 data can be sued by the EEOC and be compelled to provide the data. Employers must complete the report by September 30, 2019.

If you have any questions regarding the content of this alert, please contact Michael Sciotti, partner, at msciotti@barclaydamon.com or another member of the firm’s Labor & Employment Practice Area.