Covered Employers Must Provide More Detailed Pay Data to United States Equal Employment Opportunity Commission by September 30, 2019

Employers who are required to submit the annual Employer Information Report EEO-1 (“EEO-1 Report”) must now begin preparations to provide newly required “Component 2” data for 2017 and 2018 by September 30, 2019. United States District Judge Tanya Chutkan recently issued an order directing the Equal Employment Opportunity Commission (“EEOC”) to collect the pay and hours data, which is a mandate that was issued during the Obama presidency. Covered employers now have two deadlines for filing EEO-1 Reports: May 31, 2019 for the traditional sex, race, and ethnicity data for 2018, and September 30, 2019 for the new pay and hours worked data for years 2017 and 2018.

As a reminder, the EEO-1 Report is a compliance survey mandated by federal law. Employers with 100 or more employees, and federal contractors with 50 or more employees, must categorize employment data by sex, race, ethnicity, and job category, and submit this information to the EEOC. More information about the EEO-1 form and instructions are available here. As KWW reported back in February, due to the recent government shutdown, the deadline for employers to submit Component 1 of the EEO-1 Report—i.e., an employer’s traditional demographic data—was extended to May 31, 2019.

Component 2 requires employers to report wage information from Box 1 of the W-2 form and total hours worked for all employees by sex, race, and ethnicity within 12 pay bands. The reported hours worked must show actual hours worked by nonexempt employees; an estimated 20 hours per week for part-time exempt employees; and 40 hours per week for full-time exempt employees.

In light of this development, covered employers should start looking at their 2018 data now and conduct an initial assessment of which systems will allow them to pull the relevant information in a timely manner.

It is also important to note that the EEOC shortened the length of EEO-1 Component 1 filing extensions. Employers may now only request a single 14-day extension of the 2018 EEO-1 report deadline to June 14, 2019. According to the EEO-1 website, companies requesting an extension beyond two-weeks must summarize the issue the company is experiencing and communicate with the Employer Data Team.

If you have further questions about the renewed Component 2 requirement, please feel free to contact Jim Wilkins, John Hofstetter, or any other KWW attorney.