The EEOC’s pay data reporting requirement has been reinstated. Component 2 of the EEO-1 report collects annual earnings by job category, race/ethnicity, and gender within 12 pay bands. It also collects hours worked by the employees in each of those categories. Component 2 for both calendar years 2017 and 2018 is now due by September 30, 2019.
Employers with 100 or more employees, as well as Federal contractors with 50 or more employees and a Federal contract valued at $50,000 or more (with some exceptions) are required to file EEO-1 Reports. EEOC defines “employee” as anyone for whom the company is withholding FICA taxes. Component 1 is the EEO-1 report that has historically been due each year. The deadline for submitting this year’s Component 1 report remains May 31, 2019.
It’s important to note that employers with 50-99 employees are exempt from filing Component 2 and will continue filing Component 1 only.
The EEOC has announced that they intend to open the Component 2 filing system in mid-July and that they will provide further instruction for filers over the upcoming months.
There are two primary data sets that will be needed:
1. 2018 W-2 Box 1 earnings for each employee.
2. Total hours worked by each employee in calendar year 2018.
- For non-exempt employees this corresponds to FLSA hours worked, excluding non-working time for vacations, holidays, leaves, etc.
- For exempt employees you may either report actual hours worked or report 40 hours per week for full-time employees and 20 hours per week for part-time employees.
Both data sets will also be needed for calendar year 2017.
Many news outlets have reported that employer groups are poised to appeal the court’s decision, in an effort to block Component 2 of the EEO-1 report. While this may be true, we have been advised by our contacts at EEOC that they are now proceeding as though reports will need to be filed by September 30th and that we, and you, should do the same.
We understand the data requirements pose many questions; we will provide more information in June and will continue to keep you informed if there are any significant changes to the filing requirement.
Clients can contact their affirmative action project manager at (585) 381-8340 with questions.
Did You Know?
HR Works can file EEO-1 Reports for any employer, even if they’re not an Affirmative Action client.
If you have a friend or colleague who could benefit from HR Works’ affirmative action expertise, you can receive $500 for introducing us to a new client. Contact us for more information.
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