On April 3, 2019, the Equal Employment Opportunity Commission (EEOC) informed a federal judge that it will require employers to turn over Component 2 pay data.  The employer data will be broken down by race, gender and ethnicity, and must be submitted no later than September 30, 2019. EEOC Acting Chair Victoria Lipnic extended the reporting deadline due to the agency not having a system in place to collect the pay data.

As a result, Ms. Lipnic has determined that it is necessary to exercise her Title VII administrative authority as EEOC Acting Chair, to adjust the collection deadline to September 30, 2019.  The adjusted date will accommodate the significant practical challenges for the EEOC to collect Component 2 data in response to the Court’s Order.

EEOC Will Spend Over $3 Million

To meet the September deadline, the EEOC has determined that the agency must outsource the development of a system capable of collecting the Component 2 data.  The contractor would perform the information collection for 2018 EEO-1 Component 2 data, including providing the processes, procedures, and systems to undertake and close the collection by September 30, 2019, a cost more will exceed $3 million.

The EEOC’s Chief Data Officer Samuel C. Haffer, Ph.D., explained in a declaration to the court, that the data processes used to collect EEO-1 demographic data are not capable of collecting employers’ 2018 Component 2 data. That is because the EEOC collects EEO-1 data from approximately 80,000 employers, and it’s current is programmed to collect 140 data fields for the Component 1 demographic collection. In contrast, for each Component 2 report collected from an employer, there will be 3,360 data fields of pay data to be addressed.

EEOC Warns of Risks With a Rushed Process

The EEOC warns that there is a severe risk that the expedited data collection process may yield poor quality data because of the limited quality control and quality assurance measures that would be implemented due to the expedited timeline. This will be the first time that the EEOC utilizes the contractor to perform a collection of information on an expedited basis.

Click here to read the court document