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By: Hillary Freesmeier
Employers with 100 or more employees are no stranger to the EEO-1 Report. The EEO-1 Report requires all employers with 100 or more employees, or federal contractors with 50 or more employees awarded a contract of $50,000 or more, to report employee demographics by gender, race, and ethnicity each year. Typically, the report must include data from any pay period from October to December and must be filed by March 31 of the following year. However, in light of the government shutdown, the EEOC has delayed the opening of the EEO-1 reporting period to March 18, 2019 and has extended the deadline to May 31, 2019.
Additionally, a federal court has reinstated previous expansion to the EEO-1 Report, which requires employers to also track and report compensation and hours worked within 12 pay bands based on employees’ gender, race, and ethnicity.
Such expansion dates back to a January 2016 Obama-era proposal that required employers to also provide W-2 earnings and hours worked with their EEO-1 Report in an effort to increase pay transparency and equal pay compliance. Such proposal was approved by the Office of Management and Budget (OMB) in September 2016 and was titled “Component 2.” Before Component 2 could be implemented, the OMB decided to review and stay the collection of Component 2 data.
Shortly after the stay was effected, the National Women’s Law Center and the Labor Council for Latin American Advancement sued to reinstate the Component 2 reporting requirements. On March 4, 2019, U.S. District Judge Tana J. Chutkan in the District of Columbia vacated OMB’s stay and ordered that the Component 2 revisions go into effect.
Although the EEO-1 reporting period is just days away, employers don’t be alarmed. It is unlikely that the EEOC will require Component 2 reporting for 2018 on such short notice. Additionally, it is currently anticipated that the government will appeal the ruling. Therefore, employers’ best course of action is to monitor the EEO-1 reporting requirements closely. FMG will continue to watch the EEO-1 Report developments and provide updates to keep employers informed.
If you have any questions or would like more information, please contact Hillary Freesmeier at [email protected].