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Breaking Down the Newly Updated EEO-1 Component 2 Pay Data Materials Part 1

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The Equal Employment Opportunity Commission (EEOC) recently updated its website with new resources for submitting pay and hours worked data in compliance with annual EEO-1 reporting mandates. For most industries, this long-awaited update affects employers with more than 100 employees. However, it also applies to contractors who employ 50 or more workers. 

In this two-part article, an Orlando construction lawyer from Cotney Construction Law will discuss the newly updated EEO-1 Component 2 data materials and the effect this update will have on contractors moving forward. Remember, for all of your construction-related legal needs, including maintaining compliance with the EEOC, consult an Orlando construction lawyer with years of experience fighting on behalf of the construction industry. When owners, lawmakers, and regulators try to break you down, our lawyers are available to build you up.

Sample Forms

For the most part, sample forms have remained the same. However, the EEOC did change the pay data heading from “Annual Salary in Thousands” to “Salary Compensation Band.” This minor change helps clarify the fact that the twelve salary bands are not based on annual salary. This figure is based on annual W-2, Box 1 income data. This change was made to help make this heading less misleading. 

Instructions

Additionally, the EEOC has clarified the instructions for submitting EEO-1 Component 2 Pay data materials. This includes:

  • Filers can opt to use a Type 6 or Type 8 form when reporting pay for locations with less than fifty employees. Type 6 filers “must enter all employment data into the Consolidated report (Type 2).” For Type 8 reports, the system will “automatically transfer to populate the overall Consolidated Report.” These numbers should be the same as the total of all other reports combined.
  • The EEOC has limited the confidentiality provision. The following statement has been omitted: “The confidentiality requirements allow the EEOC to publish only aggregated data, and only in a manner that does not reveal any particular filer’s or any individual employee’s personal information.”
  • As the result of a recent Supreme Court decision, EEOC broadened the basis for rejecting Freedom of Information Act (FOIA) requests for pay data. This may include confidential trade secrets and commercial or financial information depending on the case.
  • Filers are permitted to utilize a proxy for exempt employee hours (40 hours/week for full-time employees, or 20 hours/week for part-time employees, multiplied by the number of employed weeks for the year). However, they somewhat bafflingly omitted the following statement: “To the extent that the use of the proxy numbers cause some deviation from an exempt employee’s actual hours worked, the certification of the report as accurate would be considered appropriate.”  

To learn more about the newly updated EEO-1 Component 2 Pay data materials provided by the EEOC, read part two.

If you would like to speak with one of our Orlando construction lawyers, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.