EEO Component 2 Data – Dead Again?

As you know, last year a Court issued an order requiring employers to submit pay data broken down by gender and race as part of employers’ EEO-1 filings (Component 2 data). The deadline for submission of Component 2 data for 2017 and 2018 is September 30, 2019.

On September 12, 2019, the EEOC published a notice in Federal Register announcing that it will not seek to renew the rule that requires submission of Component 2 data. The notice explains:

The Commission now concludes that it should consider information from the ongoing Component 2 data collection before deciding whether to submit a pay data collection to OMB. At this point in time, the unproven utility to its enforcement program of the pay data as defined in the 2016 Component 2 is far outweighed by the burden imposed on employers that must comply with the reporting obligation. Therefore, the EEOC is not seeking to renew Component 2 of the EEO–1

The notice triggers a 60 day comment period. It is unclear if it will trigger more litigation. It is also unclear whether employers should continue to collect Component 2 data just in case or should trust that the requirement for submission is actually dead.

We will continue to monitor developments. In the meantime, we apologize if this news causes whiplash.

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