The EEOC sent out an email to company contacts on June 3. It was short but informative. The agency re-emphasized the requirement to file Component 2—the salary portion of the EEO-1 - for calendar year 2017 and 2018 and that the report was due by September 30, 2019. Remember Component 2 is only required for companies with 100 or more employees.
The Office of Federal Contract Compliance Programs recently issued the agency’s first opinion letter, as promised by Directive 2018-08. Opinion letters are to serve as guidance on specific topics responding to helpdesk inquiries or direct requests for opinion letters. These letters do not change laws, regulations, or OFCCP policy and do not provide legal advice.
EEOC is moving quickly toward implementing the data collection for Component 2 of the EEO-1 report. The agency submitted one of the required periodic updates to Judge Tanya Chutkan on May 24, 2019. The report details their progress with their outsource vendor, NORC, for Component 2 of the EEO-1 report—since awarding the contract on May 1, 2019. The University of Chicago’s National Opinion Research Center, or NORC, is an independent research institution that delivers reliable data and rigorous analysis according to their website. NORC has been working in the field of social science and public opinion research since 1941.
The EEOC announced that it intends to collect pay data and hours worked (Component 2) for 2017 and 2018. This news settles the question that has been looming for weeks about what year(s) of pay data would be collected.
Pay data refers to the amount paid on an employee’s W2 form in Box 1. Hours worked are the actual hours worked for employees reported in the data. Remember the EEO-1 is filed using a snapshot of the employee population for one pay period between October 1 and December 31 of the EEO-1 year-to-be-filed. Using employees from the snapshot, the pay and hours worked should be filed for the entire year, through December 31 of 2017 and 2018.
EEOC responded to the Court’s questions about its ability to collect Component 2 of the EEO-1 report on April 3, 2019. Read the full response here. The EEOC’s response is summarized below:
Today the EEOC announced that the website used for filing the EEO-1s will be open in early March. The delay in opening the website is due to the partial government shutdown that affected the EEOC.
When I signed up to write this blog I thought we would all be preparing for the 2018 EEO-1 filing season. Instead, the EEOC is closed during the partial federal government shutdown. Therefore, we do not have any new news about the filing. However, we have some suggestions as you prepare for filing the 2018 reports after the EEO-1 website is up and running again.
OFCCP demonstrated they are listening to federal contractors about the way businesses operate in the current environment. For many contractors, business does not operate out of a single establishment address but from a number of work spaces, including company owned or leased establishments, shared work spaces, client locations, and home offices. Business functions are spread among multiple physical locations, and developing an AAP for each location does not provide leaders with an effective affirmative action analysis for their area of responsibility. Additionally, a single business location may house multiple functions which makes it nearly impossible to provide a meaningful analysis or assign responsibility when the functions are grouped together.