On April 25, 2019, A Federal Judge in Washington, D.C. set a new deadline of September 30, 2019, for the Equal Employment Opportunity Commission (EEOC) to turn over employee pay data. From the bench on Thursday, U.S. District Judge Tanya Chutkan ruled in favor of the plaintiffs to collect two years of employee data sorted by race, ethnicity, and sex. Judge Chutkan gave the EEOC the option of submitting the 2017 pay data along with the 2018 information by the September 30th deadline or submitting 2019 pay data during the 2020 reporting period. The EEOC has until May 3rd to notify the Federal Court of its reporting decision. With this potential deadline coming up soon, Employers should be prepared to submit 2018 pay data by the September 30th deadline.
What to Expect
There is a possibility of an appeal for this ruling, but this is all dependent on how the EEOC will decide to move forward. However, it is essential for employers to be ready to submit this employee data as the potential deadline is coming up quickly. The Commission is attempting to make the collection portals available to employers by July 15th and plan to provide information and training before that July 15th date. Employers should still be prepared to submit 2018 data for Component 1 of the EEO-1 by May 31, 2019. Component 1 requested information on the number of employees by job category, race, ethnicity, and sex. Component 2, which is the subject of this legal dispute, includes information on hours worked and pay from employees' W-2 forms by race, ethnicity, and sex. Businesses with at least 100 employees and federal contractors with at least 50 employees and a contract with the federal government of $50,000 or more must file the EEO-1 form. The information, including the number of woman and minorities companies employee, collected in these forms are used to support civil rights enforcement and analyze employment patterns.
To find out more about the Equal Employment Opportunity Commission (EEOC), visit their website.
The Burden on the Employers
Very little attention was paid to the collection and reporting burden this ruling will bring on employers. The revised EEO-1 form requires employers to report wage information from Box 1 of the W-2 form and total hours worked for all employees within 12 proposed pay bands. With this increased needed employee data for the EEO-1 forms, there's a more significant potential for human error when populating the expanded form. Employers should start looking at their 2018 data now and identify the systems, payroll or otherwise, that hold the relevant information needed to complete the forms, including demographics, pay and hours worked.
How We Can Help
In time and attendance, accuracy is everything. Inaccurate payroll can result in lost trust with employees, problems with human resources, and even wage and labor penalties. TimeClock Plus provides you the tools and technology needed to pay your people accurately and on time while maintaining FLSA compliance. Our flexible licensing model allows you to adjust to your changing circumstances and to react to changing legislation quickly. For more than 30 years, we have served one purpose - to protect our customers, our team, and all of those impacted by our business. If you believe your organization may be affected by the 2019 EEOC Federal ruling, please contact one of our Solutions Consultants and see how we can help you or visit our website to find out more.