By the HR Team at East Coast Risk Management
If you were one of the 60% of covered employers who missed the September 30th deadline to submit the required EEO-1 Component 2 pay data, you may have more time.
In its September 27, 2019 Status Report the Equal Employment Opportunity Commission (EEOC) announced that it is extending the deadline for employers to submit Component 2 of the EEO-1 report. The EEOC revealed that a Court’s order is in effect requiring that the collection remain open until it reaches what the Court has determined to be the target response rate for submission of the Component 2 data for 2017 and 2018. A new deadline has not been announced.
Please note: If your company did not complete EEO-1 Reports for 2017 or 2018 year, then there is not any further action required of you in regard to Component 2. If your company employs 100 or more individuals or is considered to be a federal contractor with 50 or more employees, you may start considering filing for the 2019 year when it opens in upcoming months.
Here you can see who must file. https://www.eeoc.gov/employers/eeo1survey/whomustfile.cfm
How Much Extra Time Do You Have?
Any required employers who have not yet filed should submit their report in as quickly as possible. Nita Beecher, an attorney with the Fortney & Scott, LLC law firm in Washington, D.C., says the deadline was extended because the federal district court order requires the EEOC to receive 72 percent of the filings the agency collects on average for its EEO-1 report. As of last week, there was an estimated 40%.
Employers, including federal contractors, are required to submit Component 2 compensation data for 2017 if they have 100 or more employees during the 2017 workforce snapshot period. Employers, including federal contractors, are required to submit Component 2 compensation data for 2018 if they have 100 or more employees during the 2018 workforce snapshot period. The workforce snapshot period is an employer-selected pay period between October 1 and December 31 of the reporting year. Federal contractors and other private employers with fewer than 100 employees are not required to report Component 2 compensation data.
The EEOC has posted resources for filers, including Frequently Asked Questions (FAQs), Sample Data Collection Form, Instruction Booklet for Filers, User’s Guide, Fact Sheet, and more. All are available at https://eeoccomp2.norc.org .
As reported by Laura Pokrzywa in our September blog, there is good news for employers who have been wrestling with the newer requirements of EEO-1 reports. The EEOC recently announced that, effective next year, employers will no longer be obligated to provide the compensation data that was added as “Component 2” of the form in 2016.
Implementation of Component 2 has been bumpy from the start. The order was stayed by the Office of Management and Budget (“OMB”) in 2017. That stay was then challenged and shot down in a federal district court. The court then ordered that covered employers must report Component 2 data for both 2017 and 2018 by September 30, 2019. Though covered employers who did not meet that deadline have not been given a new date for submission – and Component 2 will probably not be required in the future – the requirement remains for 2017 and 2018 data. Therefore, covered employers should keep at it and get their numbers to the EEOC as soon as possible.
If you are an employer with questions on any issue relating to human resources, safety, or workers’ compensation, contact East Coast Risk Management by calling 724-864-8745 or emailing us at hrhelpline@eastcoastrm.com.
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