Delivering for Best-in-Class Wholesaler-Distributors
April 2019

Employers required to file the EEO-1 reporting form with the Equal Employment Opportunity Commission will, effective September 30, 2019, be required to file detailed compensation data for 2018. On April 25, 2019, the U.S. District Court in the District of Columbia ruled that covered employers must file employee compensation data sorted: by 10 job categories; by 12 pay bands ranging from less than approximately $19,200 to greater than $208,000; by 5 groups of race and ethnicity; and by gender.

This additional compensation data has been generally referred to as “Component-2 data.” It is an add-on to demographic data (excluding compensation) previously reported by employers in the 10 job categories, by gender, race and ethnicity (“Component-1 data”).

The court ordered the EEOC to notify employers by April 29 of the reinstated requirements on its website and in the Federal Register, and to collect two years of data, with an option to collect data for 2017-2018 or 2018-2019.

Judge Chutkan’s decision effectively revives the Obama-era EEOC rule mandating collection of Component-2 data that had been blocked in August 2017 by the Office of Management and Budget.

Covered Employers: In general, private employers with 100 or more employees that are subject to Title VII of the Civil Rights Act are required to file Form EEO-1. Special rules apply for federal contractors. Covered employers will still be required to report 2018 Component-1 data with the EEOC by May 31, 2019.

Appeal Possible:

There is the possibility that the Department of Justice may appeal this decision and seek a stay of the district court’s ruling. In addition, the business community is considering the possibility of filing a motion to intervene in an appeal to ensure than business interests are represented in any further court action. NAW will be participating in this matter as it proceeds.

Absent any appeals, it appears that covered employers will be required to collect and report Component-2 data to the EEOC by September 30, 2019.

 

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