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UPDATE: Judge finalizes EEO-1 reporting requirements and deadlines

After a nearly two-month state of uncertainty we now have final word on the 2018 reporting. On April 25, a federal district judge in Washington, D.C. ruled that employers are required to submit Component 2 data (i.e. employee wages and hours) for 2018 EEO-1 reporting by Sept. 30. 

Note that 2018 Component 1 data (i.e. the current EEO-1 form) is still due May 31 to the EEOC. The judge not only ruled that employers must submit 2018 Component 2 day by Sept. 30 but was highly critical of the EEOC for postponing the Obama era expanded reporting requirements. 

In the final order, there were eight declarations or orders from the court:

Declaration #1

The EEOC must require employers to report Component 2 data for 2017 and 2018.

Declaration #2

The EEOC can require pay data for 2019 rather than 2017, but must notify the court by May 3.

Declaration #3

The Court extended the approval of the expanded reporting from September 30, 2019 to April 5, 2021.

Declaration #4

The EEOC must take immediate actions necessary to collect Component 2 data.

Declaration #5

The EEOC must post instructions on their website and the Federal Register by April 29 notifying filers of the change.

Declaration #6

The EEOC must provide updates on their progress to the Court every 21 days.

Declaration #7

The EEOC will not be deemed to have completed the Court’s requirements until the percentage of EEO-1 reporters that have submitted their required EEO-1 Component 2 reports equals or exceeds the mean percentage of EEO-1 reporters that actually submitted EEO-1 reports in each of the past four reporting years.

Declaration #8

The Court maintains jurisdiction over the matter.

Declarations 1 and 2 are of key significance to employers who are required to report. The EEOC has announced it will require employers to report both 2017 and 2018 Component 2 by Sept. 30, 2019.  This will present a significant challenge for employers as they will have to collect two years’ worth of historical wage and hour data. 

Many organizations, such as the United States Chamber of Commerce, filed court briefs during this process citing issues they believe they will face in gathering the required pay and hour data. Obviously, these concerns, expressed by both the EEOC and employers groups, did not sway the judge's final decision. 

The next steps for employers

Now that we know employers must report Component 2 data for both 2017 and 2018, employers should begin gathering their historical pay and hour data. They can start by identifying where the source data is held, and how they can extract the correct data.

Once they have the data, employers will need to populate the Component 2 form, which is greatly expanded over the current version of the EEO-1 form requiring only Component 1 data.  The risk for human error grows exponentially for employers as they attempt to report this massive amount of additional data. 

To eliminate the human error and burden of data collection, employers will likely want to find a vendor that is equipped to support these filings.

Tags: EEO-1 reporting