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The U.S. Equal Employment Opportunity Commission (“EEOC”) recently announced the 2019 EEO-1 Component 2 portal is open.  If you are an employer with 100 or more employees, you are required to electronically file Component 2.   Component 2 requires covered employers to provide compensation data on their workforce, including the number of employees and the hours worked segregated by gender, race/ethnicity, job category, and salary. Data must be provided for calendar years 2017 and 2018.

Employers hovering around the 100 employee-mark might wonder how to determine if they need to file.  To make this determination, employers should use the “workforce snapshot period” – an employer-selected pay period between October 1 and December 31 of the reporting year.  If the period you select has over 100 employees (including both full time and part time employees) you are covered. 

The deadline to file is September 30, 2019.  It is important to note, Component 2 is in addition to the EEO-1 Component 1 data that was due at the end of May.

Employers wishing to view a sample report can do so at: https://eeoccomp2.norc.org/assets/documents/Comp2EEO1OnlineFilingSampleForm.pdf

A few tips:

• Employers must report actual hours worked for non-exempt employees. Employers may also report actual hours worked for exempt employees, or may opt to report based on “proxy” hours (typical full-time vs. part-time status) which is the scheduled number of hours worked in a typical week times 52 weeks.

 

• Each employee must be reported under a specific “Salary Compensation Band.” To determine the appropriate Salary Compensation Band for each employee, employers should be looking at Box 1 on the employee’s W-2 (Wages, tips, other compensation). EEO-1 Component 2 provides 12 different Salary Compensation Bands, ranging from $19,239 and below to $208,000 and above. E.g., an employee earning less than $19,239 would be in Salary Compensation Band 1 and an employee earning more than $208,000 would be listed in Salary Compensation Band 12.

 

• Be accurate in the data you report – false reporting could result in fines and/or imprisonment.

 

Why is this a big deal?

First, EEO-1 reporting is required by law. An employer who fails to report EEO-1 data could be subject to a lawsuit compelling the employer to report.  Second, should a discrimination suit be filed against your company and it is revealed you never reported your EEO-1 data, it will put you in a bad light. Third, the data you provide will be available to a number of agencies which may be inclined to investigate further – including the EEOC and the Department of Labor.

If the data you collect brings to light some issues you were not aware of, now is the time to fix them. Consider working with competent labor and employment counsel to determine how best to level the playing field at your company and prevent a discrimination claim.  Remember, no matter what the data may bring to light – you must report the information accurately.  Don’t try to pull a fast one with the EEOC – no one looks good in an orange jumpsuit.

. Brody and Associates regularly provides counsel on civil rights issues and employment laws in general.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.