EEOC Issues FAQs on EEO-1 Component 2 Wage and Hour Data
Labor & Employment Alert 07/10/19 Jeff Piell
On July 1, 2019, the EEOC issued a series of Frequently Asked Questions ("FAQs") regarding the new requirement to submit EEO‑1 Component 2 data on hours worked and wages paid. As previously reported, the deadline to produce this data is September 30, 2019. Employers, including federal contractors, with more than 100 employees will be required to submit "Component 2" data regarding hours worked and W‑2 Box 1 income, each across 12 pay bands, for each job categorized by sex, ethnicity and race.
The EEOC's 28 FAQs cover a variety of topics including the deadline, filing requirements, summary compensation data, hours worked, multi‑establishment reporting, on‑line filing system, and confidentiality of data. Some highlights:
- Employers will count their employees during the "workforce snapshot period," a date selected by the employer between October 1 and December 31 of the reporting year. Employers may use a different workforce snapshot period for 2017 and 2018.
- The only employees whose compensation and hours‑worked data must be reported are those full- and part‑time employees who were on the employer's payroll during the workforce snapshot period.
- Employers must reference W‑2 Box 1 earnings, and not gross annual earnings, for Component 2 data.
- For non‑exempt employees, employers must report actual hours worked.
- For exempt employees, employers must report actual hours worked (if accurate records are maintained) or a proxy of 40 hours per week for full‑time employees and 20 hours per week for part‑time employees. The employer may report actual hours for some exempt employees, if tracked, and use a proxy for the rest.
- If an employer meets the 100 employee threshold, it must report Component 2 data for all of its establishments, including those with fewer than 100 employees.
- Employers will not be able to access their 2017 and 2018 Component 1 reports in the Component 2 EEO‑1 online filing system.
- The EEOC suggests that FOIA exemptions protecting privileged and confidential trade secrets and commercial or financial information may protect an employer's Component 2 reports from disclosure. However, the EEOC's website warns that "all Internet‑based communication is subject to the remote likelihood of tampering from an outside source."
The EEOC is directing employers with questions to contact the help desk at NORC at the University of Chicago, the entity that will be conducting the Component 2 EEO‑1 Compensation Data Collection. NORC can be contacted toll‑free at (877) 324‑6214 or by email at [email protected].
In the first two weeks of July, the EEOC will be contacting employers to remind them of the filing requirements and deadlines, and will issue employer login credentials.
On July 15, 2019, the EEOC's portal will open and uploading of data may begin. Again, the reporting deadline is September 30, 2019.
Employers with questions on the EEOC’s EEO-1 Component 2 reporting requirements or other issues may contact your local Quarles & Brady attorney or:
- Jeff Piell: (312) 715-5216 / [email protected]