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EEOC Publishes Much Anticipated EEO-1 Component 2 Guidance in Advance of Employers’ September 30th Filing Deadline

On July 1, 2019, the Equal Employment Opportunity Commission (“EEOC”) published its much anticipated guidance on the collection and submission of Component 2 data of the EEO-1 report.  As a reminder, covered employers are required to submit Component 2 data (which covers certain pay data and hours worked data) for report years 2017 and 2018 by September 30, 2019.  The EEOC intends to use Component 2 data to identify potentially unlawful pay disparities based on race/ethnicity and sex.

The guidance, which is published on the EEOC’s web-based portal, includes a variety of information, including a sample EEO-1 Component 2 report form, a Fact Sheet, and a Frequently Asked Questions section (“FAQ”).

Much of the new guidance aligns with that which the EEOC published in 2016, before the White House’s Office and Management and Budget stayed the collection of Component 2 data in August 2017.  Below are a few important highlights from the new guidance:

  • Workforce Snapshot Period
    • Employers need only submit Component 2 data for employees employed during the “workforce snapshot period” for each of the relevant reporting years.
    • The “workforce snapshot period” is an employer-selected pay period between October 1 and December 31 of the reporting year.
    • The “workforce snapshot period” does not need to be the same for 2017 and 2018, nor does it need to align with the pay period used for submitting Component 1 data.
  • Pay Data
    • Employers will submit Component 2’s pay data by

Employers Must Submit Pay Data in EEO-1 Reports for 2017 and 2018 – Additional Guidance from the EEOC is Forthcoming

As a result of recent federal litigation, the Equal Employment Opportunity Commission (“EEOC”) has announced that employers must submit pay data in their annual EEO-1 reports to the agency for calendar years 2017 and 2018 by September 30, 2019.  Although not currently active, the EEOC expects a web-based portal for the collection of the data to be open by mid-July 2019.  The portal will be available at https://eeoccomp2.norc.org.

In addition to the portal, the EEOC intends to issue guidance, including FAQs and other materials, to assist employers in mid-July 2019.  In the meantime, the Department of Justice has filed a Notice of Appeal to the federal litigation that lifted the EEOC’s stay on collecting such pay data.  Likewise, the EEOC’s helpdesk is set to become operational this week and can be contacted as follows:

Email: EEOCcompdata@norc.org

Toll Free Telephone: (877) 324-6214

Although an appeal has been filed, the EEOC is proceeding with enforcement of the regulation, so employers should not wait on the outcome of the appeal to begin compliance efforts. If they have not already done so, employers should immediately begin reviewing their collection processes to ensure that they are prepared to report the required pay data by September 30, 2019.

Bryan Cave Leighton Paisner LLP has a team of knowledgeable lawyers and other professionals prepared to help employers review and comply with EEO-1 reporting obligations.  If you or your organization would like more information or assistance in preparing EEO-1 reports, please contact an attorney in the Labor

Employers Have Until September 30, 2019 to Submit Pay Data to the EEOC

Update to our April 11 article:

Earlier today, Judge Tanya S. Chutkan of the U.S. District Court for the District of Columbia ordered employers to submit worker pay data to the Equal Employment Opportunity Commission (“EEOC”) by September 30, 2019. In so ruling, the Court rejected arguments from worker advocate groups who had sought to require the collection of pay data by May 31, 2019.

Pursuant to the Court’s Order, employers must submit two years’ worth of pay data to the EEOC.  While data for 2018 must be included in an employer’s September 30th submission, the EEOC is free to choose whether the second year of data will come from 2017 or 2019.   If the EEOC elects to collect data from 2017, employers will be required to submit the 2017 pay data by September 30, 2019 as well.  If the agency elects to collect data from 2019, employers will be required to submit the 2019 pay data in the spring of 2020.  The EEOC has until May 3, 2019 to decide whether it will collect 2017 pay data or 2019 pay data.

If not already done, employers should immediately begin reviewing their collection processes to ensure that they are prepared to report the required pay data by September 30, 2019.

Bryan Cave Leighton Paisner LLP has a team of knowledgeable lawyers and other professionals prepared to help employers review and comply with EEO-1 reporting obligations.  If you or your organization would like more information or assistance in preparing EEO-1

EEOC Proposes September 30, 2019 Deadline for Employers to Submit Pay Data

In court documents filed on April 3, 2019, the Equal Employment Opportunity Commission (“EEOC”) announced that employers may be required to submit pay data to the agency by September 30, 2019.

The filing was made after Judge Tanya S. Chutkan of the U.S. District Court for the District of Columbia ordered the EEOC to describe when and how it will comply with the Court’s March 4th Order lifting the White House’s Office of Management and Budget’s August 2017 stay on the EEOC’s collection of pay data.

Pay data has received much attention from employers and advocates alike since the Court’s March 4th Order, but the EEOC has largely remained silent until this recent filing.  For example, on March 18, 2019, when the EEOC opened its online portal for filing EEO-1 reports for 2018 (which are due by May 31, 2019), the portal did not include any request for pay data.  Instead, the agency issued a statement that same day noting that it was “working diligently on next steps” regarding the collection of pay data.

In addition to identifying a date by when employers may need to submit pay data, the EEOC’s April 3rd filing also proposes that employers only be required to submit pay data for 2018 (rather than 2017 and 2018) and describes the agency’s plan to use a data and analytics contractor to develop a new reporting program to collect the data.

The September 30, 2019 deadline, however, is not set in stone.  Worker advocates objected to the

OFCCP Issues New Compensation Directive

The OFCCP’s recent Directive, issued on August 24, 2018, signals a move towards greater transparency in the compensation review process for contractors.  With this new Directive, the OFCCP has rescinded former Obama-era guidance on compensation review, for a more open and transparent process.  The OFCCP sent out 750 corporate scheduling announcement letters to contractors on September 7, 2018, so compliance reviews may be imminent for a number of employers.

Highlights

Pay Analysis Groupings

The Directive sets out the OFCCP’s procedures for grouping similarly-situated employees for statistical compensation analysis.  The OFCCP explains that it analyzes compensation for similarly-situated employees by:

  • developing pay analysis groupings (PAGs); and
  • statistically controlling for further structural differences within the PAGs and individual employee characteristics, such as tenure, prior experience, education and grade level.

In a significant change, the OFCCP will use the contractor’s compensation hierarchy and job structure to run its analysis, provided that:

  • the structure is reasonable,
  • the OFCCP can verify the structure as reflected in the contractor’s compensation policies, and
  • the groupings are of sufficient size to conduct a meaningful statistical analysis.

If the contractor does not provide information about its compensation system, the OFCCP will as a default use either EEO-1 or AAP job groups.  The OFCCP will “control further for sub-job groupings, functions, units, or titles,” as well as “tenure, full-time status” and other factors as appropriate.

Statistical Methodology and Modeling

The Directive provides an overview of the OFCCP’s methodology for statistical analysis of compensation data during the

Hands-Free Laws: Practical Considerations for Employers

As of July 1, 2018, Georgia is now one of 16 states that have banned the use of a hand-held cell phone while driving.  Under the new Hands-Free Georgia Act (House Bill 673), drivers in Georgia may not:

  • Physically hold or support a wireless communication device or stand-alone electronic device with any part of the body;
  • Write, send, or read any text based communications on such devices;
  • Watch a video or movie on such devices; or
  • Record or broadcast a video on such devices.

The Hands-Free Georgia Act does allow drivers to use a single button on a wireless device to make a voice phone call.  Under the new law, drivers may also use a wireless device for voice-to-text communications and for navigation purposes.   Drivers may use a wireless device in a lawfully parked vehicle, but not while the vehicle is at a stop light or in stopped traffic.

Violations of the Hand-Free Georgia Act carry a fine of up to $50 for a first conviction, $100 for a second conviction, and  $150 for a third conviction.  First-time offenders can avoid a fine by appearing in court with a device or receipt for a device that allows for hand-free calls.

Similar hands-free laws have also been enacted in California, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, New Hampshire, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and West Virginia, as well as the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands.

With the growing use

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