Employers with 100 or more employees and certain federal contractors have been required to submit EEO-1 reports, identifying the number of employees working in each job category by race, sex and ethnicity, since 1996. In 2016, under the Obama administration, the EEOC proposed revisions to the information required to be reported each year on the EEO-1 form to include pay and hours data, known as Component 2 data.
Then, in 2017, the Trump administration’s Office of Management and Budget issued a memorandum staying the new rules from going into effect. This stay was vacated by a U.S. District Court for the District of Columbia on March 4, 2019, The Court ruled that covered employers must submit Component 2 data for both 2017 and 2018 calendar years by September 30, 2019.
EEO-1 Component 1 Overview
To recap, for Component 1 reporting, covered employers must report the number of employees employed in each of 9 job categories by race, sex and ethnicity. There are 9 job categories:
1.1. Executive/Senior Level Officials and Managers
1. First/Mid Level Official and Managers
4. Sales Workers
5. Administrative Support Workers
6. Craft Workers
8. Laborers and Helpers
9. Service Workers
Employers must pull required data from one pay period in either October, November or December of the survey year. Employers choose which month to use from those three. Employers must report both full and part time employee data.
Covered employers that have multiple establishments (or locations) need to file separate reports for: (a) the headquarter location; (b) each business site (or establishment) that has 50 or more employees; (c) all business sites with fewer than 50 employees on one consolidated report with all of those locations’ data; and (d) a consolidated report that includes data for all employees of the company.
Employers must give employees the opportunity to self-identify their race/ethnicity for the EEO-1 report. Only if employees choose not to self-identify can employers use other employment records or observations to provide the required information.
New EEO-1 Component 2
The new EEO-1 Component 2 requires employers to additionally report hours worked and pay data, broken down by race, sex, and ethnicity and by EEO-1 job category (the same 9 job categories use for Component 1) for 2017 and 2018 payrolls by September 30, 2019.
Hours data should be reported by the employer in the aggregate for all employees in each pay band and job category by race, ethnicity and sex. For non-exempt employees, employers must report hours worked as recorded for FLSA purposes during the reporting year, including overtime. For exempt employees, employers may choose to report actual hours worked, if the employer maintains accurate records of hours worked OR may report proxy hours. If the employer chooses to use proxy hours for exempt employees, they should report 40 hours per week x the number of weeks worked in the year for full time employees and 20 hours per week x the number of weeks worked in a year for part-time employees. Weeks worked for exempt workers = the number of weeks paid in a year.
Obviously, once hours data is determined for both exempt and non-exempt employees within each job category, pay band, ethnicity and sex, these numbers are aggregated together for reporting.
Employers must report pay data for employees within the following 12 pay bands, and broken down by job category, race, ethnicity and sex:
1. $19,239 and under
12. $208,000 and over
The reporting for each EEO-1 job category will look similar to the chart below. Once employers determine pay data, they should report the number of employees within each pay band and category:
For determining which wages to report, employers should report the wages found in Box 1 on each employee’s W-2 form. This includes wages, tips, overtime, bonuses, fringe benefits, employer contributions to HSA’s or other compensation. It does not include elective deferrals such as employee contributions to a 401(k) plan.