What is component 2 data in EEO-1 report?

The term EEO-1 “component 2” refers to paydata that some employers are obliged to file as part of their EEO-1 report (W-2 information by gender, race and job category). The most recent deadline for submitting these component 2 data is September 30, 2019.

This deadline is for data on wages and hours from the 2017 and 2018 reporting periods. Employers that employed more than 100 employees during the 2017 and 2018 “workforce snapshot periods” need to submit component 2 for each reporting year and for all full-time and part-time employees. (Note: the “workforce snapshot period” is an employer-selected pay period between Oct.1 and Dec.31).

Any other employer (including federal contractors with fewer than 100 employees) isn’t obliged to submit component 2 data in their EEO-1 report.

Recent history of EEO-1 component 2 data

The EEOC (Equal Employment Opportunity Commission) had decided to ask employers to start submitting paydata for the 2017 EEO-1 reporting period on. However, that decision was then stayed by the Office of Management and Budget (OMB).

In the beginning of 2019, that stay was in turn overruled by Judge Tanya Chutkan in the US District Court for the District of Columbia. The EEOC was ordered to collect component 2 data after all.

Component 2 vs. Component 1

After paydata collection was ordered by Judge Chutkan, the EEO-1 report consisted of two components: component 1, or demographic data (employees broken down by gender, race/ethnicity, job category), and component 2, or paydata (employees’ W-2 income information broken down by gender, race/ethnicity, job category).

Employers needed to submit component 1 by May 30, 2019, while September 30, 2019 was set as the deadline for component 2.

EEOC will not renew data collection

Because of the Paper Reduction Act (PRA), the EEOC needs approval from OMB to continue collecting data in EEO-1 reports. While the EEOC decided to ask OMB to renew approval for component 1, it announced that they won’t submit a request for approval for component 2 data: “the EEOC is not seeking to renew Component 2 of the EEO-1”.

The court’s approval for Component 2 collection will expire no later than April 25, 2021. The stay of the OMB is now pending on appeal (National Women’s Law Center, et al. v. Office of Management and Budget, et al., Case No. 19-5130 (D.C. Cir.).)

None of these affect the upcoming deadline for component 2 data for 2017 and 2018. Covered employers are obliged to submit this data as instructed. But, it’s possible employers will not have to gather and submit component 2 paydata in the years to come.

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