Hunton Employment & Labor Perspectives

This past week, the EEOC filed suit against 15 different employers located across 11 different states. There was one common theme in each action: an employer’s failure to complete EEO-1 Component 1 reports for both 2021 and 2022. By filing these lawsuits, the EEOC is requesting courts to order these employers to fulfill their requirement of providing their company’s workforce demographic data. These suits were filed just ahead of the deadline for employers to file their EEO-1 Component 1 report reflecting data from the 2023 calendar year, which is quickly approaching on June 4, 2024.

Earlier this month, the EEOC launched EEOC Explore, “an interactive data query and mapping tool” that gives users access to aggregate data on more than 73,000 employers and 56 million employees across the United States.  According to the agency, EEOC Explore “enables stakeholders to explore and compare data trends across a number of categories, including location, sex, race and ethnicity, and industry sector without the need for experience in computer programming or statistical analysis.”

A bill recently signed into law in California will require private employers to submit annual “pay data reports” to the Department of Fair Employment and Housing (“DFEH”) beginning in March 2021. The California law implements a previously announced program rolled back by the Trump administration to expand federal reporting requirements to include employee pay data by race, gender, and ethnicity.

As we blogged about earlier this year, a U.S. District Court in Washington, D.C., in April ordered the EEOC to collect two years’ worth of EEO-1 Component 2 pay data from mid-size and large employers by a deadline of September 30, 2019.  In its most recent status report on the subject, however, the agency revealed it did not collect enough data to satisfy the judge’s response criteria, having received submissions from only 39.7% of eligible employers.  Perhaps unfortunately for employers, the EEOC said it will continue accepting compensation data for reporting years 2017 and 2018 until it satisfies the court’s criteria that Component 2 data “be equal to or exceed the mean percentage of EEO-1 reporters” that turned in EEO-1s in each of the past four years.  On its official website, the EEOC encourage all employers to “submit their data as soon as possible.”

Businesses with at least 100 employees and federal contractors with at least 50 employees must annually file an EEO-1 Private Sector Report disclosing to the Equal Employment Opportunity Commission the number of women and minorities they employ by job category, race, sex and ethnicity.  Covered employers have been providing this traditional race-ethnicity and sex data (referred to as “Component 1 data”) to the Commission for over half a century.  The EEOC uses it to analyze employment patterns and support civil rights enforcement.

Employers breathed a collective sigh of relief in August 2017, when the Office of Management and Budget (OMB) announced it was staying the requirement that employers report W-2 wage information in the annual EEO-1 Report.   Now, though, the reprieve seems over.  On March 4, 2019, the District of Columbia Federal Court ruled that OMB improperly issued the stay without good cause, and put the wage report back into effect.  See National Women’s Law Center v OMB, No. 1:17-cv-2458 (D.D.C.  March 4, 2019).

The day employers have been waiting for, has finally arrived.  The government has indefinitely stayed the requirement that companies begin reporting “Component 2” wage data in their EEO-1 Reports.  Companies around the country are breathing a collective sigh of relief.

Hunton & Williams recently published an entry on its Retail Law Resource Blog regarding what employers can expect from Victoria Lipnic, the new acting chair of the Equal Employment Opportunity Commission (“EEOC”) and an EEOC Commissioner since 2010.  Since that publication, Lipnic has made public comments as to what she envisions from the EEOC under her leadership.  Several key topics from those comments are summarized below:

As previously reported, the EEOC announced on January 29, 2016 its proposal to require businesses with 100 or more employees to annually turn over pay data by gender, race and ethnicity.   The public has until April 1, 2016 to submit comments on the proposal.  Both the Retail Industry Leaders Association (RILA) and the U.S. Chamber of Commerce have issued statements that the proposed requirements would be overly burdensome for employers and would result in the collection of data that would fail to provide any meaningful insights as to whether employer pay practices are discriminatory.  ...

The Equal Employment Opportunity Commission announced on January 29, 2016 its proposed revision to the Employer Information Report (EEO-1) that would obligate businesses with 100 or more employees to annually turn over pay data by gender, race and ethnicity. Although employers will not have to divulge specific pay rate information for individual employees, they would have to report pay bands across 10 different job categories.