The Equal Employment Opportunity Commission (EEOC) is required to follow a new EEO-1 reporting requirement. Because of this, certain employers are now required to submit additional employee pay data to the EEOC by Sept. 30, 2019.
What is the new EEO-1 reporting requirement?
The EEOC has to collect pay data from employers on Component 2 data – hours worked and pay information by employees’ race, ethnicity, and sex.
In 2016, the Obama administration set this new reporting rule for the EEOC so they could better enforce equal pay laws.
In 2017, the Trump administration issued a stay (aka suspending) this requirement. A lawsuit followed, so the requirement was on hold until April 2019, when U.S. District Judge Tanya S. Chutkan issued a ruling in the case.
Chutkan ruled the EEOC must comply with the new rule and report pay data for the past two years on employees’ race, ethnicity, and sex.
The EEOC must report this data for 2017 and 2018 by Sept. 30, 2019.
What do I have to do?
You may have to submit employee data to the EEOC.
If any of the following requirements apply to you, you must collect and submit this information to the EEOC by Sept. 30, 2019:
- Employers that have 100 or more employees in 2017 and/or 2018
- Federal contractors that have 100 or more employees in 2017 and/or 2018
It’s important to note that you can choose a pay period between October 1 and December 31 of each reporting year as your workforce snapshot period.
If you fall below the 100 employee threshold during either period, you don’t have to submit Component 2 data. And, you can choose different pay periods for both 2017 and 2018.
Again, if you meet any of these standards, you must submit the sex, race, and ethnicity pay data information on the EEO-1 form.
You’ll receive a notification letter from NORC at the University of Chicago via USPS mail and email. They’ll use the registered EEO-1 email address on record. According to EEOC, these letters will include your user ID and will be sent out on July 15, 2019.
Take a look at EEOC’s fact sheet for deadlines and reminders to help you successfully submit your EEO-1 with Component 2 data.
What action should I take now?
Start collecting this information now. It could be a big undertaking given this is the first time you’re compiling the data. Some systems may not easily produce the report.
You should have already submitted Component 1 data by June 14, 2019 – the number of employees that work for you by job category, race, ethnicity, and sex.
Now, you’ll need to know the hours worked and pay information from employees’ W-2 forms by race, ethnicity, and sex for your 2017 and 2018 payrolls.
If you work with a payroll provider, reach out to them to get this report to ensure you meet the Sept. 30, 2019 deadline.
How do I submit this information?
The EEOC has an online portal you can use to submit your employee pay data. The portal will be open and accept submissions in mid-July 2019. Your reports should be in the CSV data file format.
Have questions about the new EEO-1 reporting requirement? Let’s talk!