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OMB Orders Stay on Pay Data Collection Elements of the EEO-1 Report

Compliance
Article
09/01/2017
  • On Aug. 29, 2017, the Office of Management and Budget (OMB) announced a review and immediate stay of the pay data collection aspects (Component 2) of the Equal Employment Opportunity Commission’s (EEOC’s) EEO-1 Report, most recently revised on Sept. 29, 2016.
  • The prior EEO-1 Report, which only collects data on race, ethnicity and gender by occupational category, will remain in effect for covered employers. 
  • The filing date was not revised. Covered employers must comply with the EEO-1 Report (Component 1) filing date of March 31, 2018

Action occurs under the Paperwork Reduction Act

On Aug. 29, 2017, the Office of Management and Budget (OMB) informed the Equal Employment Opportunity Commission (EEOC) that it is initiating a review and immediate stay of the effectiveness of the pay-data collection aspects of the EEO-1 Report that was revised on Sept. 29, 2016 after finding the continued collection of the data was in violation of the Paperwork Reduction Act. The communication to the EEOC informed the agency that it would need to submit a new “information collection package” to the OMB for review. This action falls within the OMB’s authority under the Paperwork Reduction Act.

Neomi Rao, the administrator of the Office of Information and Regulatory Affairs, sent a memo to EEOC Acting Chair Victoria Lipnic informing the agency of the OMB’s action. Rao is considered President Trump’s “regulatory czar,” heading the “most powerful government office no one’s ever heard of.” 

Employers: Use EEO-1 form, filing date

The previously approved EEO-1 Report (Component 1), which collects data on race, ethnicity and gender by occupational category, will remain in effect. Covered employers should plan to submit their completed EEO-1 Report (Component 1) by the filing date of March 31, 2018. 

The EEOC has posted online instructions for completing the EEO-1 Report.

The 2016 revisions to the EEO-1 Report aimed to collect summary employee pay data from certain private employers, federal contractors and subcontractors with 100 or more employees in an effort to further the agency’s initiative to ensure equal pay.

Submit EEO-1 Report, Component 1 only

Again, covered employers, including private employers with 100 or more employees and federal contractors and subcontractors with 50 or more employees, should submit only the EEO-1 Report (Component 1), without the 2016 pay data collection elements (Component 2). Reports must be submitted and certified by March 31, 2018.

Paychex will post updates on this issue as they occur.

Tammy Tyler

Tammy Tyler is a senior compliance analyst with a focus on employment law at Paychex, Inc., a leading provider of integrated solutions for payroll, HR, retirement, and insurance services.

This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.