Pay equity, diversity and inclusion
Today is the EEO-1 Component 1 Filing Deadline
Today, October 25, is the deadline to submit Component 1 of the annual EEO-1 report for the 2019 and 2020 tax years.
The deadline was originally extended to August 23 due to the impact of the COVID-19 pandemic on organizations but was further extended to give affected businesses more time to compile their snapshots. The agency has made it clear that today’s deadline, is the final deadline.
Employers that still need to submit their employee snapshot data to the Equal Employment Opportunity Commission (EEOC) can do so in one of two ways:
- Through the online form that allows for data to be securely entered via the EEO-1 Component 1 Online filing System; or
- Using the data file upload system. This process allows organizations to upload prepopulated data. The EEOC notes that the uploaded data must conform to its specified file layouts.
EEO-1 Component 1 data includes employee information like race, gender, EEO-1 job category, and physical location. While not required, employers would be wise to include additional information such as employee names and reporting managers.
When deciding which snapshot period to use for the submission, organizations must include employees who telecommute. Given the new working environment and increased hybrid schedules imposed by the pandemic, this information should not come as a surprise.
Below are the different types of organizations that must submit EEO-1 Component 1 data for the 2019 and 2020 tax years:
- Private employers subject to Title VII of the Civil Rights Act of 1964, as amended, with 100 or more employees
- Federal contractors and first-tier subcontractors with at least 50 employees and a minimum of $50,000 in contracts
- Financial institutions and government depositories with 50 or more employees
- Private employers with less than 100 employees if their association with or common ownership with another company adds up to 100 employees
If you haven’t filed, be sure to file and certify the EEO-1 reports in order. That means submitting the 2019 report before submitting and certifying your 2020 information. In addition, any acquisitions, mergers, or organizational changes that took place between January 2019 and December 2020 need to be reported. For more information, head to the EEOC data reminders page.
If your organization needs assistance gathering your data, preparing the EEO-1 reports, and filing with the EEOC, contact us to learn about our EEO-1 filing services.
While EEO-1 Component 2 pay data reporting is currently on hold, recent events indicate that its return may be sooner than expected. The Office of Federal Contract Compliance Programs (OFCCP) for instance, recently announced that it would be leveraging Component 2 pay data for pay equity enforcement, which aligns with the head director, Jenny R. Yang’s focus. The EEOC’s newest Chair Charlotte A. Burrows too has made pay equity a top priority for the agency.
The two federal agencies’ pay equity priority fit nicely into the larger agenda coming into play from the Biden administration, which has currently made pay equity and diversity, equity, and inclusion (DEI) a top priority. Most recently the administration passed an executive order that promotes DEI in the federal workforce.
What does this mean for employers? Now is the time to prepare for the return of the EEO-1 Component 2 pay data collection. The requirement has already proven to be an effective way of identifying gender and race/ethnicity wage gaps, as recently seen in California and its pay data reporting law SB 973.
We recommend opting for a pay equity analytics and ongoing DEI monitoring solution, like PayParity. Such software can help you identify and remediate pay disparities before filing with local or federal governments. In addition, PayParity empowers you to take a proactive approach to social good and ultimately helps you achieve an equitable workforce.
To learn more about how a tool like PayParity can help your organization prepare for greater DEI transparency and pay equity, download our research report, conducted by HBR, Creating a Culture of Diversity, Equity, and Inclusion.
Conducting a pay equity audit is a key component to ensuring equitable compensation within your organization. Just as important as the analysis is how you communicate findings and progress with various stakeholders. Download The Pay Equity Communications Planner to learn best practices for discussing compensation, both internally and externally.