What is the EEO-1?
The EEO-1 is a compliance survey mandated by Title VII of the Civil Rights Act of 1967, as amended by the Equal Employment Opportunity Act of 1972. The survey requires that certain employers submit two types of data annually. Component 1 data includes the racial, ethnic and gender composition of an employer’s workforce by specific job categories1; while Component 2 data requires employers to report hours worked and pay information from employees' W-2 forms by race, ethnicity and sex.
EEO-1 filers should be preparing to submit Component 2 data for calendar years 2017 and 2018 by September 30, 2019, in light of the court's recent decision in National Women's Law Center, et al., v. Office of Management and Budget, et al.2 Although the Department of Justice filed a Notice of Appeal in this lawsuit, that notice does not affect the district court’s order to move forward with the gathering of Component 2 data.
Who Must Report?
All private employers with over 100 employees must comply with EEO-1 reporting requirements. Even if an employer has fewer than 100 employees, but is owned or affiliated with another company, or there is centralized control, ownership or management such that the entities constitute a single enterprise having 100 or more employees, that employer must report. Also, federal contractors and first-tier subcontractors who have 50 or more employees and a contract, subcontract, or purchase order with the federal government amounting to $50,000 or more must comply with the reporting requirements.
The following employers are exempt from reporting: state and local governments; public primary and secondary school systems, institutions, or higher education; American Indian or Alaska Native tribes; and tax-exempt private membership clubs other than labor organizations.
Component 2 data, which includes hours worked and pay information from employees' W-2 forms by race, ethnicity and sex for calendar years 2017 and 2018 is required to be submitted by September 30, 2019.
The U.S. Equal Employment Opportunity Commission (EEOC) has a web-based portal for the collection of Component 2 data. On July 15, 2019, the electronic filing system went live, meaning that employers can now submit their data to the system. The URL for the portal is https://eeoccomp2.norc.org.
The EEO-1 Report is used by the EEOC and the Office of Federal Contract Compliance Programs (OFCCP) to collect data from private employers and government contractors about their women and minority workforce. This information is used to support civil rights enforcement and to analyze employment patterns, such as the representation of women and minorities within companies, industries or regions. The OFCCP also uses the data to determine which employers should undergo compliance evaluations, such as those with the most likelihood of systematic discrimination. Therefore, employers should be careful in reviewing the accuracy of their company’s data before submitting it.
Employers who are required to comply with the EEO-1 reporting requirements should work with an experienced employment attorney to ensure they are in compliance with the EEO-1 requirements before the September 30, 2019 deadline.
1The deadline for submitting Component 1 data continues to be May 31, 2019.
2Civil Action No. 17-cv-2458 (D.D.C.).