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EEOC opens portal for filing EEO-1 Component 1 data

Delayed in 2020 so that HR professionals would not have to go into their workplaces during the start of the pandemic, the EEOC has now opened its portal for filing EEO-1 Component 1 data.  The deadline for filing Component 1 data is July 19, 2021. The EEOC announced the opening of its portal, as follows:

Update:  2019 and 2020 EEO-1 Component 1 Data Collection is NOW OPEN

After delaying the opening of the 2019 EEO-1 Component 1 data collection because of the COVID-19 public health emergency, the EEOC has announced that the 2019 and 2020 EEO-1 Component 1 data collection is NOW OPEN.  Eligible employers have until Monday, July 19, 2021 to submit two years of data.

Filers should visit the newly launched EEO-1 Component 1 website at https://EEOCdata.org/eeo1 for the latest filing updates and additional information.  By visiting the Filer Support Center located at https://EEOCdata.org/eeo1/support, filers can request assistance as well as find helpful resources, including fact sheets and FAQs.

Employers are reminded that Component 1 data is the demographic data that employers have been used to filing with breakdowns by various protected classes. In contrast Component 2 data was the paydata previously and controversially under consideration.

Generally, it is larger employers and government contractors who are required to file, as the EEOC explains here:

The following companies are required to file the EEO-1 Component 1 Report annually:

  1. Private employers who are subject to Title VII of the Civil Rights Act with 100 or more employees.
  2. Private employers subject to Title VII affiliated through common ownership and/or centralized management with other entities in an enterprise with a total employment of 100 or more.
  3. Federal government prime contractors or first-tier subcontractors subject to Executive Order 11246, as amended who are not exempt as provided for by 41 CFR 60-1.5, with both 50 or more employees and a prime contract or first-tier subcontract amounting to $50,000 or more.
  4. Employers that serve as a depository of Government funds in any amount or as a financial institution which is an issuing and paying agent for U.S. Savings Bonds and Savings Notes and have 50 or more employees.
Only those establishments located in the District of Columbia and the 50 states are required to submit an EEO-1 Component 1 Report. No reports should be filed for establishments in Puerto Rico, the Virgin Islands, or other American Protectorates.

State and local governments, public primary and secondary school systems, institutions of higher education, American Indian or Alaska Native tribes and tax-exempt private membership clubs other than labor organizations are also exempt from the EEO-1 Component 1 Report. However, non-profits and not for profit organizations are required to file the EEO-1 Component 1 Report.

Trying to prepare your EEO-1 data filing in the midst of coronavirus pandemic? FYI, the EEOC just delayed EEO-1 data collection for 2020 due to coronavirus

The EEOC has delayed EEO-1 data collection for 2020 until 2021 due to coronavirus. In its press release, the EEOC explained the delay, as follows:

The EEOC recognizes the impact that the current public health emergency is having on workplaces across America and the challenges that both employers and employees alike are now facing. Filers of the EEO-1, EEO-3and EEO-5, which include private sector employers, local referral unions, and public elementary and secondary school districts, are dealing with unique and urgent issues. Delaying the collections until 2021 will ensure that EEO filers are better positioned to provide accurate, valid and reliable data in a timely manner.

EEO-1, EEO-3 and EEO-5 filers should begin preparing to submit data in 2021. Pending approval from the Office of Management and Budget under the Paperwork Reduction Act (PRA) the EEOC would expect to begin collecting the 2019 and 2020 EEO-1 Component 1 in March 2021 and will notify filers of the precise date the surveys will open as soon as it is available. The EEOC would expect to begin collecting the 2020 EEO-3 and the 2020 EEO-5 in January 2021 and will notify filers of the precise date the surveys will open as soon as it is available.

In addition to updates to the agency website, the EEOC will be reaching out directly to EEO-1, 3, and 5 filers regarding the delayed opening of the surveys.

The EEOC will formally publish its announcement in the Federal Register, to appear, starting 5/8/2020, here.

EEOC releases additional information for filing EEO-1 pay information for 2017 and 2018 — reminder, the deadline is September 30, 2019

Employers are reminded that the deadline for filing EE0-1 Component 2 information for 2017 and 2018 is September 30, 2019. As a follow-up to the EEOC’s recent information for doing so, the EEOC has released additional information and resources on its EEO-1 website and on the website of EEOC’s contractor. There, employers can find a FAQ sheet, a sample form, instructions, a fact sheet, sample notification letter and other material.

Employers should begin preparing to turn over EEO-1 pay data by September 30, 2019, details to follow from EEOC shortly

A federal trial court judge in the District of Columbia cleared the path for the EEOC controversial rule requiring employers to turn over two years of pay data by September 30, 2019. The court’s order follows a recent decision in which the judge provided further reasoning. In short the court held that, in this battle between two federal agencies (the EEOC and the OMB), the Trump administration’s OMB had failed to establish a basis for freezing the Obama-era EEOC’s pay-data collection rule. That Obama-era rule (2016) added to the longstanding workforce data requirements for an EEO-1 (which the EEOC now calls the “Component 1” data requirements), a requirement to submit pay data as well designed to demonstrate pay gaps related to gender, race, and ethnicity (now called the “Component 2” data requirements).

Which two years of data will be required and when can an employer start submitting its EEO-1? The judge gave the EEOC leeway to decide, but ordered it to post on its website an initial decision by April 29 and the final decision on May 3. The EEOC’s website states it is already “working diligently on next steps in the wake of the court’s order.” The EEOC notes its portal for submission of Component 1 data is already open.

Employers will want to visit the EEOC’s website following April 29 and again following May 3, at least, for further information on this breaking development.

Office of Management and Budgets (OMB) rejects EEOC’s revised EEO-1 Form

The OMB rejected the EEOC’s new EEO-1 form, which would have become effective March 31, 2018. The OMB reviews agency forms like this pursuant to the Paperwork Reduction Act and determined that the EEOC’s new EEO-1 had been unlawfully developed by the EEOC had underestimated the burden on employers it its published estimate. The PRA was enacted into law in 1980 and since then has required agencies to estimate the paperwork burden any new bureaucratic action would require. Here the OMB determined that the EEOC’s previously published estimate was simply, and significantly, too low. Specifically the new EEO-1 form would have required employers who are subject to EEO-1 reporting (typically employers of 100 or more) to report wage and hours worked for all employees by race, ethnicity and sex, all within 12 specified pay bands. The OMB determined that the public had not been properly apprised by the EEOC of the burdens such a requirement would entail.
The OMB’s ruling comes after much controversy over the new EEO-1 form. Commentators criticized the EEOC’s approach not only as being overly burdensome but also as overly simplistic. Commentators noted it would have created the impression that workers within the same pay bands should be paid the same amounts (irrespective of their gender, race, etc.) despite the fact that they may work in very different positions within those bands. Likewise it has been noted that the EEOC’s approach overly simplified compensation practices by not properly allowing for articulation of base wages versus bonuses, commissions, overtime and non-wage benefits that form part of a compensation package.
Although a part of the White House, the OMB is often seen as a non-partisan watch dog.
The OMB’s ruling leaves the EEOC’s proposed EEO-1 for 2018 dead in the water. The OMB has invited the EEOC to continue the OMB’s examination of the proposed EEO-1 form if it believes the form defensible. The OMB has also noted the EEOC’s prior EEO-1 would be acceptable for use. The EEOC has announced it is considering its options. Employers must wait for the EEOC’s decision to determine what form to use in the future.
Source: OMB Memoradum re EEO-1 Form, Review and Stay (8/29/17)