United States: Employers Must Report Component 2 Pay Data
A Federal Court ruling has lifted the stay on the Component 2 pay data reporting requirement. As a result, employers with 100 or more employees must provide theUnited States Equal Employment Opportunity Commission (EEOC) with Component 2 pay data by 30 September 2019.
Component 2 of the EEO-1 filing requires employers to report employee wage information from Box 1 of the W-2 from along with hours worked by all employees classified by race, ethnicity and sex.
The EEOC will provide a Component 2 portal that includes training sessions and additional guidance. The portal is scheduled to go live on July 15. Until then, employers are encouraged to work with employment counsel to review 2018 pay data and assess how employees’ wages fit in the 12 pay bands. If a pay disparity exists, employers should work with employment counsel and take the necessary steps to correct it.