On July 15, the U.S. Equal Employment Opportunity Commission opened the online portal for the collection of data on pay and hours worked (or Component 2 data) for calendar years 2017 and 2018.

According to an EEOC press release, a data file upload function and validation process (in addition to the  data collection portal) is expected to be available for all filers no later than Aug. 15, 2019, as an alternative data collection method for employers who prefer to utilize data file upload capability. Information regarding the data file upload function is available on the Component 2 EEO-1 Online Filing System website.

The EEOC also recently added to the website additional resources for employers, including a sample form, an instruction booklet, a fact sheet, reference documents and a Frequently Asked Questions page. Additionally, the website lists help desk information to offer filers additional support. Interested parties can contact the help desk by phone at (877) 324-6214 or by emailing [email protected].

Background

In light of a recent court decision, certain employers will be required for the first time to submit detailed data on employee compensation and hours worked (or Component 2 data) for calendar years 2017 and 2018 to the EEOC as part of their annual EEO-1 form submission by Sept. 30, 2019.

According to the EEOC’s FAQs, certain employers, including federal contractors, are required to submit EEO-1 2017 and 2018 Component 2 compensation data:

Employers, including federal contractors, are required to submit Component 2 compensation data for 2017 if they had 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 had 100 or more employees during the 2018 workforce snapshot period.
Federal contractors with 50-99 employees are not required to report Component 2 compensation data.
Federal contractors with 1-49 employees and other private employers with 1-99 employees are not required to file EEO-1 Component 1 data or Component 2 data.

The submission of Component 2 data was initiated during the Obama administration. However, under the Trump administration, the Office of Management and Budget blocked the EEOC from requiring employers to submit any compensation data. In March 2019, the D.C. District Court ordered the OMB stay to be vacated. 

ABC has been active in efforts to reverse the court’s decision or, at minimum, extend the time period for employers to comply with any new Component 2 pay data requirement. On May 3, the U.S. Department of Justice filed a notice of appeal of the court’s decision, but the outcome of the litigation is unclear at this time. The EEOC has since clarified that the appeal does not stay the district court orders or alter EEO-1 filers' obligations to submit Component 2 data, and EEO-1 filers should begin preparing to submit Component 2 data.