The EEOC has officially opened the online portal for collecting the Component 2 compensation data that employers are required to submit as part of the annual EEO-1 Report. What is the Component 2 data and which employers are required to submit this? Back in September 2016, the EEOC announced that it will collect summary pay data from employers and revised the annual EEO-1 report to include Component 2, which required employers to report W-2 compensation and hours worked data, beginning with the 2017 reporting period. The Office of Management and Budget (OMB) called for a review and an immediate stay on the implementation of Component 2, to allow an assessment of the practical utility of the data to be collected, evaluate the burden on employers, and address concerns about privacy and confidentiality.
On March 4, employers were caught by surprise when the U.S. District Court for the District of Columbia lifted the stay and paved the way for EEOC to start collecting pay data.
All employers with 100 or more employees are required to file an EEO-1 Report on an annual basis, which were due on May 31, 2019, for the 2018 reporting period. While federal contractors with 50 or more employees are required to file an EEO-1 report, only employers with 100 or more employees will be required to submit Component 2 data. Employers have until September 30 to submit their compensation data.
