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UPDATED: New Payroll Requirements for EEO-1 Reports

By: Nick Nykulak | 4/29/2019 | Category: Employment Law-Wage and Hour

UPDATE:   On May 3, 2019, the U.S. Equal Employment Opportunity Commission (EEOC) confirmed that employers will be required to submit Component 2 pay data for years 2017 and 2018 to the EEOC by September 30, 2019.


By September 30, 2019, companies with over 100 employees must turn into the Equal Employment Opportunity Commission (EEOC) their employees’ payroll data (earnings and hours worked) as part of their annual workforce data report, also known as an EEO-1.  The EEOC hopes to identify pay gaps which may be caused by discrimination based on sex (gender), race and ethnicity by having the payroll data.  Companies with over 100 employees must submit payroll data, organized into categories of race, sex and ethnicity sorted by job categories.  The information is further sorted into 12 pay bands for each job category which is supposed to show the applicable pay rates based on the company’s diversity.

Employer groups estimate that the reporting burden of this payroll data to the EEOC would cost companies around $1.3 Billion annually.  The EEOC will determine by May 3 whether to request payroll data from employers for 2017 and 2018,  or from 2018 and 2019.  If the EEOC selects payroll data for 2017 and 2018, the two years of pay data must be reported on the EEO-1 by September 30, 2019.  If the EEOC selects 2018 and 2019 as reporting years, the 2018 payroll data will be due by September 30, while 2019 data will be reported in the Spring of 2020.  There are currently no monetary fines, penalties or debarment for failing to submit the EEO-1 report, but the EEOC does have the ability to file a lawsuit against any employer to force compliance. 

Reporting this payroll data will be an extensive undertaking that employers with over 100 employees should start preparing for now.  Feel free to contact Nick Nykulak or Lynn Schonberg with any questions you may have.

Ross, Brittain & Schonberg Co., L.P.A.

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