Government Changes Course on EEO-1 Requirements

December 3, 2019

The Office of Federal Contract Compliance Programs (OFCCP) has decided that it will not request, accept, or use the “Component 2” compensation data submitted on the 2019 EEO-1 form.

Employers were required to complete Component 2 about workplace and pay practices tied to enforcement of Title VII and the Equal Pay Act.

The only reason that it had to be filled out in the first place is that the Trump administration lost its legal battle to repeal the requirement. So, while employers had to fill it out, it now turns out that the information is likely to sit in a box or in the cloud somewhere and will never be touched.

The OFCCP statement, coupled with the recent decision by the Equal Employment Opportunity Commission (EEOC) to not collect that compensation data on its Form EEO-1 next year suggests that the broadening of the EEO – 1 form is over.

The decision does not, however, impact at all the collection of the “traditional” EEO – 1 data that employers with 100 or more employees and federal contractors with 50 or more employees are required to file with the EEOC. That data includes the number of individuals employed, their distribution by legal entity and location, and their demographic characteristics.

Adding a little more confusion to the mix though, the EEOC recently announced that it is considering a new rule that may include a new reporting requirement by which employers would submit pay data or related information as reasonable, necessary, or appropriate for the enforcement” of Title VII and the Equal Pay Act. So maybe the issue is not all done yet?

All this means is that EEO – 1 subject employers should stay tuned as the debate over the scope of the form continues to move forward.