Employers now have a reprieve from reporting pay data by job category, race, sex and ethnicity to the federal government. A federal judge ordered the EEO-1 Component 2 pay data collection complete, Bloomberg reported Feb. 10. We've gathered articles on the pay data reporting requirements from SHRM Online and other trusted media outlets.
No More Pay Data Required
A judge in the U.S. District Court for the District of Columbia initially required the collection of two years of pay data by Sept. 30, 2019. That deadline was postponed until Jan. 31, when the judge decided more employers should submit the data. Nearly 90 percent of all employers required to submit the data had done so by Feb. 7. The Equal Employment Opportunity Commission (EEOC) and plaintiffs agreed the agency could wind down the receipt of pay data. A final status report is due Feb. 14.
DOJ Challenged Pay Data Collection
Earlier this year, the federal government filed an appeal with the U.S. Court of Appeals for the District of Columbia Circuit, arguing that the district court "exceeded its authority in directing EEOC to proceed with the collection in a particular manner." The district court "continues to superintend" the EEOC's data collection, even though the agency retains discretion over the process, said Lindsey Powell, an attorney for the U.S. Department of Justice, during oral argument Jan. 24. The district court impermissibly directed the EEOC to take "highly specific actions" to collect the information, the government argued, by forcing the EEOC to collect two years of pay information—for 2017 and 2018—by a certain date and directing the agency to keep collecting information until a specific number of employers responded.
(SHRM Online)
EEOC Announced It Would Sunset Pay Data Reporting
The EEOC announced on Sept. 11, 2019, that it plans to sunset the Component 2 pay data reporting requirement. "The unproven utility to its enforcement program of the pay data as defined in … Component 2 is far outweighed by the burden imposed on employers that must comply with the reporting obligation," the agency said.
(SHRM Online)
Who Must File the EEO-1 Form?
Businesses with at least 100 employees, and federal contractors with at least 50 employees and a contract of $50,000 or more with the federal government, must file the EEO-1 form, which identifies by job category, race, sex and ethnicity the number of employees who work for the business.
(SHRM Online)
[SHRM members-only HR Q&A: What are the filing requirements for the EEO-1 form?]
Component 1 of Form Survives
The first part of the form—Component 1—survives and helps the EEOC better understand the racial, ethnic and gender makeup of the workforce by classification, industry and geography. It also helps the EEOC get an idea about the diversity of an employer accused of discrimination when the agency investigates a claim. The Office of Federal Contract Compliance Programs uses Component 1 of the report to decide, in part, which contractor establishments the agency will audit for affirmative action compliance.
(SHRM Online)
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