FREQUENTLY ASKED QUESTIONS (FAQs)

Collection of 2017 and 2018 Component 2 Compensation Data

Deadline

Employers must file 2017 and 2018 Component 2 compensation data by September 30, 2019. As Ordered by the court's recent decision in National Women's Law Center, et al., v. Office of Management and Budget, et al., Civil Action No. 17-cv-2458 (D.D.C.), EEO-1 filers must submit Component 2 data for calendar year 2017, in addition to Component 2 data for calendar year 2018, by September 30, 2019.

Filing Requirements

Employers, including federal contractors, are required to submit Component 2 compensation data for 2017 if they have 100 or more employees during the 2017 workforce snapshot period (defined below). Employers, including federal contractors, are required to submit Component 2 compensation data for 2018 if they have 100 or more employees during the 2018 workforce snapshot period.

Federal contractors with 50-99 employees are not required to report Component 2 compensation data.

Federal contractors with 1-49 employees, and other private employers with 1-99 employees, are not required to file either EEO-1 Component 1 data or Component 2 data.

Employers will count their employees during the “workforce snapshot period.” The “workforce snapshot period” is an employer-selected pay period between October 1 and December 31 of the reporting year. The workforce snapshot period for the 2017 EEO-1 report would be an employer-selected pay period between October 1, 2017, and December 31, 2017. Likewise, the workforce snapshot period for the 2018 EEO-1 report would be an employer-selected pay period between October 1, 2018, and December 31, 2018.

The only employees whose compensation and hours-worked data must be reported are those full- and part-time employees who were on the employer’s payroll during the workforce snapshot period.

To determine if they meet the 100-employee threshold for 2017 or 2018, employers will count the number of employees during the workforce snapshot period for the corresponding reporting year. Employers with 100 or more employees during the workforce snapshot period in 2018 will file 2018 Component 2 data with summary pay and hours-worked data. Employers with 100 or more employees on the payroll during the workforce snapshot period in 2017 must file Component 2 data with summary pay and hours-worked data for 2017 reporting year.

No. Employers are permitted to choose a different workforce snapshot period for reporting Component 2 data for each of these years, if they so choose.

No. The employer is not obligated to choose a pay period when it has 100 or more employees. The employer may choose whichever workforce snapshot period it wants between October 1 and December 31 of the reporting year.

Yes. Even if an employee resigned or was terminated before December 31 of that year, the employee should be counted if the employee was employed during the employer’s chosen workforce snapshot period.

The employer is only reporting the total number of full and part-time employees the employer had during the employer-selected workforce snapshot period. If the employee is on board during the selected workforce snapshot period, then the employee must be counted. For example, if the employer chooses a payroll period in October 2017 as its workforce snapshot period, then all the employees on the payroll during that workforce snapshot period are counted, even employees who resign or are terminated in December 2017.

Yes. The full and part-time employees counted for the chosen workforce snapshot period represent the total number of employees the employer should include in Component 2 of the EEO-1: each employee will be reflected in one of the 12 compensation bands listed for the employee’s job category.

After tallying the total number of employees in each compensation band by job category, employers will enter this data in the appropriate columns of the EEO-1 report based on the sex and ethnicity or race of the employees.

The 10 EEO-1 job categories are:

  • Executive/Senior Level Officials and Managers
  • First/Mid-Level Officials and Managers
  • Professionals
  • Technicians
  • Sales Workers
  • Administrative Support Workers
  • Craft Workers
  • Operatives
  • Laborers and Helpers
  • Service Workers 

These are the same 10 job categories employers have been using to report their Component 1 data.

Summary Compensation Data

To identify the compensation band in which to count an employee, employers are to use “Box 1 – Wages, tips, other compensation” of Internal Revenue Service (IRS) Form W–2 (hereafter ‘‘W–2 Box 1 income’’) as the measure of pay for Component 2. Employers then tally the total number of employees who fall into each compensation band by job category. If there is no employee in a compensation band, employers should leave the cell blank.

W-2 Box 1 income is the measure of compensation to include total taxable wages, tips, and other compensation that you paid to your employee during the calendar year, as instructed by the IRS: https://www.irs.gov/pub/irs-pdf/iw2w3.pdf. Employers can use the W-2 Box 1 income figure calculated for end-of-year tax reporting purposes.

The employer reports the W-2 Box 1 income for only the selected “workforce snapshot period” employees.

No. Employers may not reference gross annual earnings instead of W-2 Box 1 earnings for Component 2 data.

No. Employers should not calculate and then report the annualized earnings for employees who did not work the full calendar year. Employers should use the information found in Box 1 on their employees’ W-2 to assign the employees to the relevant Component 2 compensation bands. The employer in this example would report the July – December employee in the compensation band that corresponds with $50,000, assuming that is the number in the employee’s W-2 Box 1.

Hours Worked

Component 2 has a second matrix to report hours-worked data. Each cell on the hours-worked matrix corresponds to a cell on the summary compensation data matrix. The hours worked during that year by all the employees counted in the cell on the summary compensation data matrix should be totaled and then recorded in the corresponding cell on the hours-worked matrix.

Yes. Hours-worked data are reported to account for part-time and partial year employment.

For non-exempt employees under the Fair Labor Standards Act (FLSA), employers must report actual hours worked.

For FLSA-exempt employees, employers have the option to either:

  1. report actual hours worked by the exempt employees if the employer already maintains accurate records of this information; or
  2. report a proxy of 40 hours per week for full-time exempt employees and 20 hours per week for part-time exempt employees, multiplied by the number of weeks the employees were employed during the EEO-1 reporting year.

If an employer does not track hours for FLSA-exempt employees, the employer is permitted to report a proxy of 40 hours per week for full-time exempt employees and 20 hours per week for part-time exempt employees, multiplied by the number of weeks the employees were employed during the EEO-1 Component 2 reporting year.

Yes. The employer has the choice of whether to report actual hours or the designated proxy hours.

Yes. If the employer tracks the number of hours worked for its FLSA-exempt employees, the employer may report that number. Similarly, if the employer tracks hours worked for some, but not all, exempt employees, the employer may report the actual number of hours worked for the employees whose hours the employer tracks and use a proxy for the rest.

The Component 2 instructions adopt the Fair Labor Standards Act (“FLSA”) definition of hours worked. Therefore, the hours-worked data that employers will report for the EEO-1 Component 2 will be based on the same hours worked that employers record for FLSA purposes. FLSA hours worked generally do not include paid leave, such as sick leave, vacation leave, or paid holidays. Therefore, this approach will also be used for the 2017 and 2018 Component 2 reporting. Employers are encouraged to rely on the U.S. Department of Labor Wage and Hours Division resources for guidance on hours worked for FLSA purposes. See Fact Sheet #22: Hours Worked Under the Fair Labor Standards Act (FLSA).

For an employee who is exempt from the FLSA, employers have the option to report the designated proxy hours of 40 or 20 hours per week for each week the employee worked that year or, alternatively, to report actual hours worked, as defined by the FLSA, if the employer already maintains records of actual hours worked for that employee. The employer will not have to create or retain any new records of hours worked. The employer may refer to any records it already keeps for the purposes of calculating hours worked for Component 2 reporting.

The aggregated hours worked should only be reported for those employees who worked during the selected workforce snapshot period. The aggregated hours will not include the hours worked by any employees who were terminated before the selected workforce snapshot period, nor the hours worked by employees who were hired after the selected workforce snapshot period.

W-2 Box 1 income and hours-worked data will be reported first by tallying the total number of employees, and then by tallying the total number of hours these employees worked during the calendar year, for each of the 12 compensation bands in each of the 10 EEO-1 job categories, and reported by sex and race or ethnicity.

The compensation bands track the 12 compensation bands used by the Bureau of Labor Statistics in the Occupation Employment Statistics survey:

Compensation Band

Compensation Band Label

1

$19,239 and under

2

$19,240 - $24,439

3

$24,440 - $30,679

4

$30,680 - $38,999

5

$39,000 - $49,919

6

$49,920 - $62,919

7

$62,920 - $80,079

8

$80,080 - $101,919

9

$101,920 - $128,959

10

$128,960 - $163,799

11

$163,800 - $207,999

12

$208,000 and over

Multi-Establishment Reporting

No. An employer reports EEO-1 Component 2 data for all its establishments, including those with fewer than 100 employees. The 100 employee-threshold is for the employer as a whole after totaling employees based at headquarters and all locations or establishments.

If an employer has establishments with fewer than 50 employees, it may choose to file a Type 6 (Establishment List) or a Type 8 (Establishment Report) for those establishments, in addition to the Consolidated Report (Type 2) and Headquarters Report (Type 3). A Type 6 List is a list for an establishment with fewer than 50 employees that includes only the establishment name, address, and total employee count. A Type 8 Establishment Report is a report for an establishment with fewer than 50 employees that includes the establishment name, address, race/ethnicity, gender, summary pay, and hours-worked data by job category and by compensation band.

The Consolidated Report includes summary pay and hours-worked data for the employer’s workforce as a whole and includes data for employees in the headquarters and at each establishment. If an employer chooses to file a Type 6 List for any establishment, the employer must manually enter EEO-1 pay and hours-worked data for the employees for all establishments into the Type 2 Consolidated Report. When an employer files a Type 8 Report for an establishment with fewer than 50 employees, the employer must enter summary pay and hours-worked data for that establishment’s employees into the Type 8 Report. The Component 2 EEO-1 Online Filing System at https://eeoccomp2.norc.org will automatically populate the Type 2 Consolidated Report with the Type 8 Report summary pay and hours-worked data.

The employee data entered into a Type 4 Establishment Report for establishments with 50 or more employees will also automatically populate the Type 2 Consolidated Report.

No. Employers are still permitted to choose either a Type 6 List or a Type 8 Report for each establishment with fewer than 50 employees for the Component 2 EEO-1 collection for calendar years 2017 and 2018. For example, if an employer submitted a Type 6 List for its Component 1 data for 2017, the employer may choose to submit a Type 8 Report in 2017 for Component 2 for that same establishment. Employers are not required to choose the same type of report or list that they chose for Component 1 in either 2017 or 2018.

Component 2 EEO-1 Online Filing System

The Component 2 data is reported under “Section D – Employment Data.” Employers will report this data through the Component 2 EEO-1 Online Filing System or by creating a data file and inputting their data in the appropriate fields in accordance with the data file specifications. Please note that when submitting a data file, the file layout must match the data file specifications exactly.

No. Employers will be unable to access their 2017 and 2018 Component 1 reports in the Component 2 EEO-1 Online Filing System.

No. Data from previously filed 2017 and 2018 EEO-1 Reports will not be in the new online application for the reporting of Component 2 data. There will be no pre-population of historical data in the Component 2 EEO-1 Online Filing System.

Confidentiality of Component 2 Compensation Data

The EEOC assesses FOIA requests at the time they are received. FOIA Exemptions 3 and 4 may protect an employer’s Component 2 EEO-1 reports from disclosure. FOIA Exemption 3 covers information that is prohibited from disclosure by another federal law. Section 709(e) of Title VII, in turn, forbids “any [EEOC] officer or employee” from making “public in any manner whatever any information obtained by the Commission . . . prior to the institution of any [Title VII] proceeding . . . involving such information.” FOIA Exemption 4 protects privileged and confidential trade secrets and commercial or financial information. Pursuant to the Supreme Court’s recent decision, Food Marketing Institute v. Argus Leader Media, --- S. Ct. ---, 2019 WL 2570624 (June 24, 2019), Exemption 4 protects information that is customarily and actually treated as private by its owner and provided to the government under an assurance of privacy.

Data System Security

NORC takes the matter of computer and system security very seriously. The systems developed to collect your company’s data have multiple layers of security and protection. The Component 2 EEO-1 Online Filing System uses the Hyper Text Transfer Protocol (HTTPS) with a Secure Socket Layer (SSL) supporting the HTTP Strict Transport Security (HSTS) to protect the Component 2 EEO-1 website and access to the filing system against security attacks. As a further safeguard, the actual Component 2 EEO-1 Online Form where you enter your company’s information does not store any of that data on the web servers where the online form resides. Rather, all Component 2 data reported through the filing system or upload process are stored inside the NORC’s firewalls in storage spaces dedicated only to this data collection effort. NORC uses firewalls that provide security against external threats by using a fleet of latest security features. In addition to the built-in applications for threat protection, NORC’s firewalls dynamically block port scans, deny access to entities that attempt to enter our systems from outside the United States, and provides distributed denial-of-service (DDoS) protection. Continuous monitoring of network traffic identifies potential threats and generates automated notifications for immediate attention of the information security team.

The Component 2 data collection systems, both the online form and the data upload process, are deployed in secure physical servers. Access to the Component 2 EEO-1 Online Filing System is secured through a multi-tiered user authentication process which prevents unauthorized access to the data collection systems. Once inside the filing system, users only have the ability to add or update data for their own employer. Unedited raw data collected through these processes are encrypted during transmission following the FIPS 140-2 compliance, and transfer of all data utilizes the NIST 800-53 security framework.

The subsequent processing of Component 2 data takes place in a secure location on the private network within NORC where access is granted only to individuals who are authorized to work on these files. All NORC staff who have access to Component 2 EEO-1 Compensation Data are annually trained to maintain data security and confidentiality and have signed Non-Disclosure Agreements (NDA) in which they pledge not to disclose, publish, divulge, release, or make known to any individual other than an authorized NORC or EEOC employee, any non-public information or any sensitive information gained in connection with the performance of their job responsibilities. At NORC, failure to comply with the NDA results in immediate job termination.

By implementing a comprehensive solution for Component 2 EEO-1 Compensation Data collection, processing, and storage in a highly secured environment, NORC ensures that your company data is well protected from unauthorized access and use.

Additional Information

The EEOC has contracted with NORC at the University of Chicago to conduct the Component 2 EEO-1 Compensation Data Collection for 2017 and 2018. If you have any further questions about this collection, please contact NORC toll-free at (877) 324-6214 or send an email to EEOCcompdata@norc.org.

Alternately, you may reach NORC via U.S. mail at the following address:

  • EEOC Component 2 EEO-1 Data Collection
  • NORC
  • 55 E Monroe St.
  • Ste. 1900
  • Chicago, IL 60603-9914