12 September 2019

EEO-1 Component 2: On Its Way Out After 2019?

Yesterday, September 11, 2019, the Equal Employment Opportunity Commission (EEOC) announced a new Notice of Information Collection regarding the EEO-1 Report.  This new Notice includes an updated burden analysis from the Office of Management and Budget (OMB) related to compilation and production of requested EEO-1 data.

EEOC states that the decades-old Component 1 race and sex data serves as a valuable resource, and the Agency is seeking authorization to continue collecting EEO-1 Component 1 data for another three years.  Significantly, the notice does not request authorization for the continued collection of Component 2 pay and hours worked data.  Rather, in its announcement, the EEOC states that the Agency is not renewing its request for authorization to collect Component 2 pay and hours worked data.  EEOC now admits that the burden to employers of reporting pay and hours worked is far greater than its earlier estimates.

So, are you off the hook this year for Component 2?  No such luck.  This Notice does not eliminate covered employers’ obligation to report 2017 and 2018 Component 2 pay and hours worked data by September 30, 2019.  However, it signals that the obligation to collect and product Component 2 data may be on its way out after 2019.

Miller Johnson’s Affirmative Action and Government Contractor Practice Group will continue to keep you updated on future developments.