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Pay Disclosure Data Must be Filed with EEOC in September

Florida employers with more than 100 employees are required to file pay data for 2017 and 2018 with the Equal Employment Opportunity Commission (EEOC) by September 30, 2019. Technically known as “EEO-1 Component 2” data, it is now required nationally for qualifying EEO-1 filers.

The EEO-1 report is a compliance survey mandated by federal statute and regulations. The survey requires company employment data to be categorized by race/ethnicity, gender and job category. Data for full and part-time workers must be included.

Pay bands used in the Component 2 reporting are consistent with the existing EEO-1 job categories listed below.

  1. Executive/senior level officials and managers
  2. First/mid-level officials and managers
  3. Professionals
  4. Technicians
  5. Sales workers
  6. Administrative support workers
  7. Craft workers
  8. Operatives
  9. Laborers and helpers
  10. Service workers

In addition to pay disclosure data, employers will also report sex and ethnicity or race of the employees.

EEOC Pay Disclosure & Salary Data ReportingPay disclosure data is being collected on behalf of the EEOC by NORC at the University of Chicago, a non-partisan and objective research organization that works with governments, non-profits, and businesses.

An estimated 70,000 private employers nationwide covering 54 million workers are expected to be subject to the ruling, according to an August 20, 2019 Wall Street Journal article titled, “Deadline Looms for Pay Disclosures.”

Information on the pay disclosure filing requirements was mailed to qualifying employers via the U.S. Postal Service and/or sent via email.

Florida employers who have questions about filing pay disclosure data can contact an employment law attorney at DLD Lawyers. Click on the link to contact us.

Background on Pay Disclosure Data Collection

The EEOC first considered ways to address pay discrimination in 2010. Following an interagency review, the EEOC published a notice in the Federal Register on February 1, 2016 announcing its plan to pursue OMB approval for a three-year data collection effort through the use of a revised EEO-1 report.

Implementation was delayed as a result of lawsuits. This changed earlier in 2019, however, when the U.S. District Court for the District of Columbia ruled in favor of the EEOC action in the case National Women’s Law Center, et al., v. Office of Management and Budget, et al., Civil Action No. 17-cv-2458 (D.D.C.).

Summary salary data will be taken from reported W-2 tax filings. Since data will be aggregated, individual salary or pay data will not be disclosed to the EEOC. Every EEO-1 job category will be broken into multiple pay bands for reporting purposes.

All companies that meet the following criteria are required to file the EEO-1 report annually:

  • Subject to Title VII of the Civil Rights Act of 1964, as amended, with 100 or more employees; or
  • Subject to Title VII of the Civil Rights Act of 1964, as amended, with fewer than 100 employees if the company is owned by or corporately affiliated with another company and the entire enterprise employs a total of 100 or more employees; or
  • Federal government prime contractors or first-tier subcontractors subject to Executive Order 11246, as amended, with 50 or more employees and a prime contract or first-tier subcontract amounting to $50,000 or more.

Establishments that are outside of the United States or the District of Columbia do not need to be reported.

One EEO-1 data record must be filed by each qualifying “single-establishment” company that conducts business at only one physical address. “Multi-establishment” companies that operate from two or more physical addresses have more complex filing requirement based on the number of locations and associated employee counts.

Going Forward

In a Federal Register notice dated September 11, 2019, the EEOC indicates that it does not intend to renew Component 2 filing requirements in future years. After conducting an updated cost / benefit analysis, the EEOC determined that the “unproven utility” of the pay data “is far outweighed by the burden imposed on employers that must comply with the reporting obligation.”

DLD Lawyers understands that the filing and compliance requirements associated with the issue of pay data can be very confusing for employers. Contact Angel Castillo, Chair of the Labor & Employment group, or another member of our team, if you have any questions.

About the Labor & Employment Practice at DLD Lawyers

DLD Lawyers represents Florida employers in all areas of employment law, including federal EEOC and state administrative law forums, class action litigation, as well as trials and appeals in federal and state courts.

When a sensitive employment law matter emerges, DLD Lawyers is ready to conduct a thorough, confidential investigation to help employers and their insurers assess the claims, evaluate the exposure, and outline recommended courses of action.

DLD Lawyers works with insurance carriers and their insureds when a claim is subject to coverage by an employment practices liability insurance (EPLI) policy.

Disclaimer

The information in this article is for general purposes only and does not constitute, and should not be taken as, legal advice for any individual case or situation. This information is not intended to create, and does not create, an attorney-client relationship with DLD Lawyers. No content in this article may be reproduced by any means or in any medium without prior written permission of DLD lawyers.

About the Author

Angel Castillo, Jr.

Angel Castillo, Jr. has significant experience during more than 30 years of practice in employment and other civil litigation and in domestic and international arbitrations. Mr. Castillo is AV® Preeminent Peer Review Rated by Martindale-Hubbell. He has been recognized by both the South Florida Legal Guide and Florida Super Lawyers as one of the top…

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