e-Alert – Employers Must Submit EEO-1 Pay Data by September 30, 2019

Background

On April 25, 2019, a federal district judge announced that EEO-1 pay data collection requirements are back in effect and must be submitted by September 30, 2019. The reports with pay data Including W2 wages and hours worked will be submitted as “Component 2” of the EEO-1 form. The reports will not only require wages from 2018, but also a second year of data for calendar year 2017. The wage and hour data, which is broken down by job categories, race, ethnicity, and sex, is intended to assist the Equal Employment Opportunity Commission (EEOC) in identifying potential discriminatory compensation practices.

Summary

The EEO-1 Report is a compliance survey, mandated by Title VII of the Civil Rights Act, that employers must use to report employment data to the federal government. Private employers with 100 or more employees and federal contractors with at least 50 employees are required to submit an EEO-1 Report to the EEOC. The EEO-1 Report provides the EEOC with data about the size, location, and race and gender demographics — and now also wage and hour data — concerning an employer’s workforce.

In general, employers required to file an EEO-1 should have received a notification letter and filing instructions from the EEOC prompting them to begin their EEO-1 Report. If you have not received a letter but have more than 100 employees or a federal contact as explained above, you are still required to file. First-time filers will need to register their organization with the EEOC before reporting.

The EEOC has opened its online portal to receive 2018 EEO-1 data starting March 18, 2019 and ending May 31, 2019. For now, the EEO-1 form can be filed similarly to how it has been done in the past, using the online EEO-1 portal to submit Component 1 data (the standard EEO-1 data) by May 31, 2019. The EEOC expects to begin collecting Component 2 data in mid-July 2019 and will notify employers of the date the survey will open as soon as It Is available.

Employer Next Steps

• If you are a covered employer, the 2018 EEO-1 Report is due on May 31, 2019, based on a workforce snapshot taken between October 1 and December 31, 2018. Filers should continue to use the currently open EEO-1 portal to submit Component 1 data from 2018 by May 31, 2019.
• Employers subject to the EEO-1 filing requirement should prepare to submit Component 2 data (on wages and hours worked) for calendar year 2017, in addition to calendar year 2018, by September 30, 2019.
• The EEOC plans to begin collecting the Component 2 data for calendar years 2017 and 2018 in mid-July 2019 and will notify employers of the precise date the survey will open as soon as it is available.
• If you are interested in outsourcing the preparation and submission of your EEO-1 Report, please email us to learn more about this service.
• Clients who are currently working with us to complete their EEO-1 filing will be provided with further direction as information becomes available from the EEOC.

The People Simplifying HR

For almost twenty years, HR Knowledge has made it our mission to demystify the complex and daunting process of HR management. We do more than just provide the level of service and technology you’d expect from an industry leader. We combine an unparalleled passion for service with our decades of HR, payroll, and benefits experience to provide our clients with personalized and actionable advice that is second—to—none. From managed payroll to employee benefits to HR support, we can help your organization thrive, grow, and reduce operating costs — no matter what industry you serve. Whether you’re interested in our Full-Service solution or just need your employee handbook written, HR Knowledge can help you minimize risk while staying on top of compliance regulations. The bottom line? We’re not just another cloud-based technology company that also does HR, #WeAreHR.

This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.