Professional Service Agreement

Court Orders EEOC to Collect Compensation Data by September 30

April 29, 2019

The U.S. District Court for the District of Columbia has ordered the U.S. Equal Employment Opportunity Commission (EEOC) to collect detailed data on employee compensation and hours worked from covered employers sorted by job category, pay band, race, ethnicity, and gender (the so-called “Component-2” data of the EEO-1 form) by September 30, 2019. The court ordered the EEOC to collect this data for calendar year 2018. The court also ordered the EEOC to collect a second year of pay data, but gave the EEOC the option of either: (a) collecting retrospective 2017 data by September 30, 2019, or (b) collecting 2019 compensation data in the normal 2020 EEO-1 reporting period (which would make it due by March 31, 2020). The EEOC must inform the court by May 3, 2019 if it chooses to elect that option. In general, private employers with at least 100 employees are required to file Form EEO-1 (including both traditional “Component-1” data, which reports workforce demographics by job category, race, ethnicity, and gender, and now the new Component-2 data). Federal contractors that are otherwise required to file Form EEO-1 will only be required to file Component-2 data if they have 100 or more employees (covered federal contractors with 50-99 employees are required to file Component-1 data only). Component-2 data includes annual W-2 (box 1) compensation sorted by pay band, and annual hours worked. EE0-1 reports regarding Component 1 data are currently due on May 31, 2019.