The federal Equal Opportunity Employment Commission will not renew its request for permission to collect certain pay data from U.S. businesses after the current authorization expires.

While that is good news for employers going forward, they still have to file expanded EEO-1 Component 2 data by Sept. 30, 2019.

The filing requirement applies to companies with at least 100 employees, and federal government contractors with at least 50 employees and more than $50,000 in contracts.

Those companies and contractors—roughly 90,000—are already required to file EEO-1 data that lists their employees along racial, ethnic, and gender lines.

The expanded EEO-1 Component 2 data requires employers to also list job titles based on 10 categories and compensation based on 12 pay ranges.

The Obama administration issued a 2014 directive that required the affected employers to collect the expanded Component 2 data.

Under the Trump administration, the White House Office of Management and Budget delayed implementing the directive so it could be reviewed under the Paperwork Reduction Act to determine the impact on employers.

The National Women's Law Center and the Labor Council for Latin American Advancement sued OMB in November 2017, claiming its delay of the pay data collection was illegal.

Employer Burden

A judge eventually ordered the federal government to collect the data.

EEOC said in a Sept. 11 filing published in the Federal Register that it would seek authorization to continue collecting only the EEO-1 Component 1 data, as it has since 1966.

EEOC said in the filing that the "unproven utility" of the expanded data collection is "far outweighed by the burden imposed on employers that must comply with the reporting obligation."

EEOC said the unproven utility of the expanded data collection is "far outweighed by the burden imposed on employers."

Companies struggling to assemble the expanded data by Sept. 30 will not have to go through these steps again when filing their next EEO-1 report in March 2020.

This year's EEO-1 filing deadline was already extended from March 31 to May 31 due to the government shutdown, then was extended further to Sept. 30 because of the court action.

For more information, contact CBIA's Mark Soycher (860.244.1138) | @HRHotline