It is not a matter of “IF” but “WHEN”

The EEO is under significant pressure by Judge Tanya Chutkan of the U.S. District Court for the District of Columbia to finalize plans for employers to complete the EEO-1 Component 2 “Pay” and “Hours Worked” by gender and race form during calendar year 2019.  During a recent court hearing, Judge Chutkan was seeking input from EEO Chief Data Officer and Director of Office of Research, Information and Planning, Dr. Samuel Haffer on the agency’s plans to receive employer EEO-1 reporting and EEO-1 Component 2 data submissions.

Dr. Samuel Haffer stated that the EEO was not prepared to receive and analyze the EEO-1 Component 2 submissions and that the EEO-1 Component 2 entire reporting process will be outsourced to the University of Chicago: National Opinion Research Center (“NORC”).

Though the EEO-1 Component 2 data submission is still in legal limbo from our perspective, it is not a matter of “IF” but “WHEN” employers will be required to submit “Pay” and “Hours Worked” by gender and race.  The current proposed use of 12 Pay Bands may prove to be cumbersome and not useful for its intended outcome of identifying pay discrimination for gender and race protected groups.

To provide a magnitude of data inflation of the EEO-1 vs the EEO-1 Component 2 reporting form, the EEO-1 Component 2 form has 3,360 potential data points per establishment as compared to the EEO-1 form with 180 potential data points. A significant amount of data systems and corresponding algorithms will be required to mitigate the mixing of apples and oranges and produce reliable and valid data for the EEO-1 Component 2 report submission.

Since we believe that “WHEN” will win against “IF”, the time for employer anticipated action to test and design information systems that will gather, report and analyze EEO-1 Component 2 data is now. A list of data elements for completion of the EEO-1 Component 2 reporting should include the following:

Employee Name
Job Title
EEO-1 Category
Race
Gender
Location
Date of Hire
Date of Termination
Number of Weeks Worked
Exempt or Non-Exempt
Full-time or Part-time
W2 Box 1 Wages
Number of Hours during W2 Period

Learn more by visiting www.johansongroup.net or www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-2/.