EEO-1 Component 2 Pay Data Reporting Portal Closed

At a Glance

• Effective February 10, 2020, the EEOC has closed the EEO-1 Pay Data Portal.
• The EEOC is still reviewing if the Pay Data information will be required in future years.

Introduction 

On February 10, 2020, the EEOC closed the EEO-1 Component 2 pay data portal for the 2017 and 2018 reporting periods. The federal judge overseeing the lawsuit determined that since the required response percentage of EEO-1 Pay data reports had been met, the government’s EEO-1 Component 2 data collection obligations have been satisfied.

At this time, the EEOC has not made a final announcement whether or not they will collect EEO-1 Pay data for future reporting periods; however, they are seeking to discontinue collection of the component 2 pay data for future years.

Background

In February 2016, the EEOC announced a proposal to revise the EEO-1 reporting to include pay data in addition to the data already collected (Component-1 data). However, in August 2017 the Office of Management and Budget (OMB) issued a stay on the pay data collection due to a number of concerns with the collection of the pay data.

In November 2017, supporters of the pay data collection filed a suit requesting that the stay be vacated. On March 4, 2018, the U.S. District Court for the District of Columbia vacated the stay of the revised EEO-1 form’s pay data reporting requirements.  On April 25, 2019, the U.S. District Court for the District of Columbia ordered the EEOC to collect 2018 pay data by September 30, 2019.

The EEOC told a federal judge on April 3, 2019 that it was unable to collect pay data (also known as Component-2 data) from employers by the EEO-1 filing deadline of May 31, 2019. The EEOC proposed that the agency could collect the pay data by September 30, 2019 for the 2018 period, if the agency could use private third party contractors to collect the data.

Due to a lower than expected responses, the agency continued to accept filing of the EEO-1 component 2 pay data until after the September 30, 2019 deadline.

Next Steps

Employers are not required to file any additional EEO-1 reports for 2017 or 2018 as of February 10, 2020. Paylocity will continue to monitor for any legislative changes that would require future filing of the EEO-1 Component 2 data, and provide updates as available.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner.

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.