Employers with at least 100 employees – or federal government contractors and first-tier subcontractors with 50 or more employees and at least $50,000 in federal government contracts – have a deadline of September 30, 2019 to file with the U.S. Equal Employment Opportunity Commission (EEOC) a revised EEO-1 Report incorporating payroll data. The EEO-1 Report, which these employers must file annually, is a compliance survey that requires company employment data categorized by race/ethnicity, gender and job category.
The additional information relating to pay that must now be submitted, known as Component 2, will enable the EEOC to evaluate pay equity. Employers obligated to submit EEO-1 Reports must now incorporate W-2 income and employee hours worked by gender for a “workforce snapshot” pay period between October 1 and December 31 of the reporting year. This information for 2017 and 2018 must be submitted on or before September 30, 2019.
Component 2 EEO-1 Reports may be filed with the EEOC online, either by completing an online form or via a data file upload.
Notably, the EEOC is empowered to investigate and remedy pay disparities based on gender or race/ethnicity. We recommend that you perform a self-audit of your company’s payroll data before submitting the report to the EEOC to identify and address any possible pay disparities that could appear to be related to employee gender or race/ethnicity.