By Elizabeth Coonan, BrownWinick attorney, with assistance from BrownWinick 2019 Summer Associate, Mariah Kauder
In 2017, the federal government suspended collection of
Component 2 data from employers subject to EEO-1 reporting requirements. Component
2 data includes employee hours worked and pay information categorized by job
type, race, ethnicity, and sex. Following
a contentious legal battle in National
Women’s Law Center, et al., v. Office of Management and Budget, et al.,
Civil Action No. 17-cv-2458 (D.D.C.), the Equal Employment Opportunity
Commission (EEOC) is requiring Component 2 data be submitted by September 30, 2019. This includes data
from calendar years 2017 and 2018.
The Component 2 reporting requirement applies to all private
employers, including federal contractors, with at least 100 employees. In
addition, companies affiliated through common ownership or centralized
management with other entities that bring the total number of employees up to
100 or more are also required to participate. Federal contractors with at least
50 employees and a federal government contract of $50,000 or more continue to
be required to complete Component 1 of the EEO-1 form. However, this
distinction does not apply to Component 2 reporting. The EEOC requires that
submissions come through either the Component 2 EEO-1 Online Filling System or
as an electronically transmitted data file. The online filing system became
available on July 15th. Instructions for submission can be found on the EEOC’s
website.
According to the EEOC, the information is used to inform
civil rights enforcement and track employment patterns. Certain advocates of
the data collection exercise contend that it will enable the EEOC to better
identify and correct pay discrimination, while others feel it is just another
administrative burden. Either way, the time is now for employers to identify
where this information is stored and begin collecting it in order to meet the
September 30th reporting deadline.
If you have questions about any of the information discussed
above, please contact Elizabeth Coonan or another of BrownWinick’s Employment and Labor attorneys.
