A notice will appear in the Federal Register this week informing the public that OFCCP does not intend to request, accept, or use EEO-1 Component 2 data. The OFCCP stated their reason is:
“it does not expect to find significant utility in the data given limited resources and its aggregated nature.”
OFCCP stated that they will continue to receive the information from EEO-1 Component 1 reports. This is the traditional EEO-1 report required to be filed by private employers and federal contractors. It is used to collect information about the number of employees at each establishment in broad job categories by race, ethnicity and sex.
Component 2 expanded the requirement for private employers and federal contractors with 100 or more employees to add W2 Box 1 income and annual hours worked, using pre-established pay bands, in the same job categories by race, ethnicity and gender for 2017 and 2018.
EEOC has recently stated that it did not intend to continue to collect Component 2 information, however, there is some public support for continuing the practice. EEOC held a public meeting on November 20, 2019 to hear from a panel which included representatives speaking on the burden of Component 2 data collection and the utility of the data in analyzing employee compensation, as well as those who support the data collection and reporting.
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