Goldberg Kohn
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EEO-1 Wage and Hour Data Submission Deadline Approaching

For many years, employers of 100 or more employees have been required to file reports with the Equal Employment Opportunity Commission about the racial/ethnic and gender composition of their workforce on form EEO-1. Despite ongoing legal battles over its implementation, the EEOC has been ordered to collect annual compensation data from employers with 100 or more employees and federal contractors with at least 50 employees.  Of immediate import, is a requirement that employers submit 2017 and 2018 compensation data to the EEOC by September 30, 2019.

Specifically, covered employers are required to provide the EEOC with aggregate annual hours worked by and compensation paid to its employees for both 2017 and 2018. In completing this submission, covered employers are required to provide aggregate W-2 box 1 wages and hours worked for all employees who were on their payroll during a single pay period of the employer's choosing that occurred from October 1 through December 31 of the reporting year (the "Workforce Snapshot Period").  With respect to the aggregate hours collection, for exempt employees, the EEOC is allowing employers to assume full-time exempt employees worked 40 hours per week and part-time employees worked 20 hours per week.  For non-exempt employees, the employer must provide aggregate actual hours worked.

The EEOC then is requiring that employers break down the aggregate hours and compensation data into the seven EEO-1 race categories and ten different job categories utilized in the Component 1 EEO-1 submissions that employers submitted earlier this year. Additionally, the aggregate data must be broken down into twelve different "pay bands" spanning from $19,239 to $208,000 and up.  Employers with more than one establishment are required to file multiple Component 2 EEO-1 reports, the exact number of which depend in part on the number of employees at the respective sites.  A sample Component 2 EEO-1 Form can be found at this link.  For many employers with employees in different locations, the determination of whether and how your company may be required to provide multiple Component 2 submissions is complex.  The EEOC has answered many questions in an FAQ Page, but you should feel free to reach out for legal advice well in advance of the September 30, 2019 deadline if you have questions.

Covered employers must submit the compensation data through the EEOC's web-based portal, called the "Component 2 EEO-1 Online Filing System." The EEOC sent correspondence to previous employer filers of the EEO-1 containing their individualized log-in information on July 15, 2019.   The EEOC will use the data it gathers to "focus" its investigation of charges alleging pay discrimination.  This data will also be shared with the Office of Federal Contractor Compliance Programs, which will use the data to schedule compliance reviews.  As such, covered employers, including federal contractors, should strongly consider analyzing their data prior to submission in a privileged manner to determine if the data presents any red-flag issues regarding pay equity.  Covered employers, and there are many, should be actively engaged in data collection and planning so that they can meet the September 30, 2019 deadline.  If you have questions regarding the Component 2 EEO-1 requirements, please contact Jon Klinghoffer or any of Goldberg Kohn's Labor and Employment attorneys.

The material in this client alert was created as of August 12, 2019 and is based on information existing at that time. It should not be construed as legal advice or legal opinions based on any specific set of facts. The information in this publication is not intended to create, and the transmission and receipt of it does not constitute, an attorney-client relationship.

Jon Klinghoffer
Principal


August 14, 2019

Questions? Please Contact:

Jon Klinghoffer
312.201.3887
email

Michael Sullivan
312.201.3963
email

David Morrison
312.201.3972
email

Kristen Jones
312.863.7139
email

Labor & Employment Practice Group
website


The material in this client alert is based on information existing at that time. It should not be construed as legal advice or legal opinions based on any specific set of facts. The information in this publication is not intended to create, and the transmission and receipt of it does not constitute, an attorney-client relationship.

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