In 1966, the Equal Employment Opportunity Commission (EEOC) began collecting pay data from employers with one hundred or more employees. These employers must file an Employer Information Report (EEO-1) which sets forth the number of individuals employed by job category, sex, race and ethnicity. As you might expect, the amount of pay data and method by which it is collected has changed significantly since 1966.
To accommodate those changes, the EEOC opened a web-based portal for the collection of pay and hours worked data for 2017 and 2018. In addition to the data collection portal available to all filers, a data file upload function and validation process is expected to be available no later than August 15, 2019.
EEO-1 filers must submit what is known as Component 2 data for calendar years 2017 and 2018 by September 30, 2019. Component 2 data is data regarding employees’ W-2 earnings and hours worked. Employers, including federal contractors, are required to submit Component 2 compensation data for 2017 and 2018 if they have 100 or more employees during the 2017 and 2018 workforce snapshot period. The workforce snapshot period is an employer-selected pay period between October 1 and December 31 of the reporting year.
Please note that federal contractors and other private employers with fewer than 100 employees are not required to report Component 2 compensation data.
EEO-1 pay information is collected under the authority of Title VII of the Civil Rights Act of 1964. The EEOC has determined that collecting such information will lead to improved enforcement of federal laws prohibiting pay discrimination. In light of the spotlight shown on equal pay as of late, we anticipate that the demands placed on employers to collect and provide information to the EEOC will only increase over time. Employers must be vigilant regarding their obligations in this area.
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