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EEOC Alert: Employers Should Monitor EEO-1 Developments

April 3, 2019

ABC members should continue to monitor developments after a recent court order dealing with the EEO-1 form enforced by the Equal Employment Opportunity Commission. The form has long required employers with more than 100 employees and government contractors with more than 50 employees to list the number of their employees in job categories by race, ethnicity and gender. This data, known as “Component 1 data” is due this year by May 31, 2019.

However, there is controversy over a new set of data on the EEO-1 form called “Component 2 data,” which the Obama administration asked employers to start collecting for the first time this year. The new data would report employee compensation in “pay bands” by race, ethnicity and gender. During the Trump administration, the Office of Management and Budget blocked the EEOC from forcing employers to submit any compensation data until recently, when a court ordered the OMB stay to be vacated. The impact of the court order is to suddenly revive the burdensome pay data requirement with very little time for employers to respond. The EEOC has also told the court it is not ready to receive compensation data. 

 
At this time, the issue remains unsettled, and ABC is involved in efforts to reverse the court’s decision or at a minimum extend the time period for employers to comply with any new Component 2 pay data requirement. The Component 1 data is still due by May 31. We will keep members apprised of updates in the court case as they occur. 

This article is intended for informational purposes only and does not constitute legal advice or opinion.

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