We wanted to pass this information along to our customers that must file EE0-1 reports since Component 2 pay data has recently been implemented by various states. The following provides information on the evaluation of the EE0-1 data collected for 2017 and 2018. This component was removed as a requirement but we continue to monitor this topic and will make appropriate updates in Sage HRMS as required by any future legislation.
The Equal Employment Opportunity Commission (EEOC) announced that the National Academies of Sciences, Engineering, and Medicine's Committee on National Statistics (National Academies) has issued its Consensus Study Report, "Evaluation of Compensation Data Collected Through the EEO-1 Form (2022)," regarding the collection of the quality and utility of the EEO-1 Component 2 data for FY 2017 and 2018.
Background: In 2016, the EEO-1 report was expanded to include the collection of Component 2 pay data that consisted of employee counts, hours worked data, race and ethnicity by gender, job category and annual compensation ranges. This collection was postponed by the Office of Management and Budget (OMB) in 2017. The National Women's Law Center brought a lawsuit against the OMB for its delay in collection of Component 2 pay data. A court order was issued on April 26, 2019 reinstating the Component 2 pay data collection for calendar years 2017 and 2018. Employers and federal contractors were required to submit Component 2 pay data for the 2017 and 2018 calendar years if they had 100 or more employees during the 2017 and 2018 workforce snapshot periods (an employer selected pay period between October 1 and December 31 of the reporting year). Component 2 data has not been collected for subsequent years.
Intended Use of Component 2 Data. Among the purposes of the collection of Component 2 data was to assist the EEOC during charge investigations in the calculation of sex and race/ethnicity pay gaps for related occupations and provided comparisons to establishment peers. Also, the Component 2 pay data can be used to identify systemic discrimination, analyze national, region, and industry-based pay gaps, and enable employers to perform self-assessments on pay disparity.
Here is a link for you to see the conclusions from, and details of, the review of the data:
The EEOC is reviewing the report and will consider its conclusions and recommendations to inform a decision on future pay data collection. Also, the EEOC will seek input from employers, employees, unions, and members of the public about the future of pay data collection.
As the Sage HRMS team have received inquiries about whether this will be re-implemented - with so many states now approving legislation for pay data collection - we will monitor this and make the appropriate updates in the product based on any decisions that are made.