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May 06 Attorney Articles

Judge Orders EEOC to Collect Pay Data by September 30, 2019

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Employers may have more time to submit compensation data to the EEOC. On April 25, 2019, a district court judge ordered the EEOC to collect calendar year 2017 and 2018 “Component 2” pay data by September 30, 2019, effectively extending the previous deadline of May 31, 2019.

What happened?  Since 1966, the EEOC has required employers with 100 or more employees to file an “Employer Information Report EEO-1,” which reports the number of individuals employed by gender, race, and ethnicity (the “Component-1” information). In 2016, the EEOC proposed to collect additional data regarding each employee’s W-2 earnings and hours worked and the number of employees within 12 pre-designated pay bands for each job category (the “Component-2” information). The collection of Component-2 information, however, was stalled through administrative and judicial processes until the district court’s April 25, 2019 ruling.

What does this mean?  All employers who are required to file Form EEO-1 (i.e. private employers with 100+ employees; certain federal contractors) must also submit calendar year 2017 and 2018 Component-2 information by September 30, 2019. Importantly, nothing changes the collection date of the traditional Component-1 information, which must be submitted by May 31, 2019.

What happens next?  Prepare to submit Component-1 information by May 31, 2019 as expected. Begin gathering 2017 and 2018 Component-2 information now in anticipation of a September 31, 2019 submission date. As of today, the EEOC predicts it will start accepting data in mid-July 2019. However, continue to check in; it is possible that this ruling could be appealed. We will continue to monitor the case for updates.