The addition of the EEO-1 Component 2 was a highly debated topic in the business and HR worlds, as the additional collection of detailed data is not only controversial but cumbersome. Just this week, the Equal Employment Opportunity Commission (EEOC) announced that it will not collect EEO-1 Component 2 data in the future. The EEOC determined that the burden imposed on employers outweighs the usefulness of the data.
Despite this announcement, Component 2 data for 2017 and 2018 must still be submitted by September 30!
Important general information regarding EEO-1 Component 2:
While employers with at least 100 employees, and federal contractors with at least 50 employees (and a federal contract of $50,000 or more) must file the EEO-1 Component 1;
Only employers with at least 100 employees (including federal contractors) must file EEO-1 Component 2.
Component 2 includes pay and hours data, along with ethnicity and gender, based on pay band and EEO job class.
Applicable employers are required to file the 2017 and 2018 Component 2 through the EEOC’s online portal.
The online portal is available to employers now, and the report is due by September 30.
For CheckWriters clients, we've built EEO-1 Component 2 reporting into our system. You can utilize this to produce and report data with the EEO-1 Component 2 online filing system prior to the Equal Employment Opportunity Commission’s (EEOC) September 30 deadline.
Prior to running the EEO-1 Component 2 report, it is advised that you review and confirm that employees are assigned an EEO class, gender, and ethnicity. If an employee has not previously indicated their ethnicity or gender, an employer is permitted by the EEOC to perform a visual survey of the employee or to use prior employment records to assign an ethnicity or gender to the employee to ensure your report is compliant and complete.
Applicable employers are required to file for both 2017 and 2018 using a compliant workforce snapshot period for each year. This will effectively require you to produce 2 reports (one for 2017 data and one for 2018 data) in order to produce and report on each required year’s information.
The CheckWriters EEO-1 Component 2 report will indicate any exceptions on the last page(s); these exceptions will include any applicable employees captured during your selected workforce snapshot period who are missing required data. Exceptions can then be adjusted at the employee level to those missing an EEO class, gender, and ethnicity, and the report can be re-run to successful completion for your filing purposes.
For assistance in running or reviewing this report, please contact your Account Specialist at CheckWriters.
Please stay tuned with CheckWriters for the latest updates, as the EEOC decision to no longer gather Component 2 data following this year could potentially be reviewed and/or overturned.