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EEOC Opens Help Desk For EEO-1 Component 2


NORC running Help Desk. Some questions answered, many remain open.

The EEOC, in cooperation with the National opinion Research Center (NORC) has delivered new information, documentation, and frequently asked questions (FAQs) to support employers in preparing for their EEO-1 Component 2 submissions. The new NORC website where this information can be accessed is https://eeoccomp2.norc.org/.

You can also contact the Component 2 Help Desk by email at eeoccompdata@norc.org or by phone at 877-324-6214. However, the technical specifications to prepare the electronic file submission and, batch upload portal are not expected to be available until July 15, 2019. IT teams should avoid any programming efforts on the electronic files until the technical specifications are made available.

Employers should continue to follow their project schedules to proactively prepare the data snapshot files for 2017 and 2018 including pay data and hours worked data. The workforce snapshot files for 2017 and 2018 with the additional data for pay and hours worked should be reviewed, and ready to go as soon as possible.

Prepare the data now so that it will be ready for the IT team to generate the electronic submission files.

Similarly, if you are working with a vendor to prepare your submissions, then you should have already pulled your data and delivered it to your consultant so that they can scrub and update the data as needed. Vendors are also waiting on the final specifications to update and prepare their software systems to organize the data and produce the electronic file for submission.

Timing is now becoming a factor as the September 30, 2019 submission deadline is fast approaching.

The FAQ list has provided key information and responses to many outstanding questions from the employer community. However, this is a work in progress with many outstanding questions which will hopefully be addressed as more employers encounter issues with preparing their data and calculating results. You should continue to monitor the FAQ list for new information as the NORC posts new and updated content.

The following are important FAQs that the NORC has posted. You can access the complete FAQ list for any other questions at https://eeoccomp2.norc.org/faq.html.

Must an employer choose the same “workforce snapshot period” for Component 2 that it chose for its Component 1 EEO-1 reporting for 2017 and 2018?

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.

If employment levels fluctuate above and below 100 employees in October through December, is the employer obligated to choose for its workforce snapshot a pay period that consists of 100 or more employees?

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.

Must employers count employees who were employed during the selected workforce snapshot period even if they were no longer active employees by December 31st of that 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.

Summary Compensation Data

Does the employer report the W2-Box 1 income for just the “workforce snapshot period” employee or for all employees who worked for the employer some time during that calendar year (i.e., employees terminated before the “workforce snapshot period” or hired after the “workforce snapshot period? The employer reports the W-2 Box 1 income for only the selected “workforce snapshot period” employees.

Can employers reference gross annual earnings instead of W-2 Box 1 earnings because gross income does not include any deductions?

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

Hours worked:

How do employers report hours for FLSA-exempt employees whose hours are not tracked? 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.

If exempt employees at a company work a standard 35 hours per week, can the employer report these hours instead of the 40- or 20-hour proxy? Yes. The employer has the choice of whether to report actual hours or the designated proxy hours.

If the employer has an exempt employee wo works 30 hours per week, but the employer does not track the actual hours of other exempt employees, can the employer report only one exempt employee’s actual work hours while using the proxy for all other exempt employee?

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.

Will employers have to report the hours worked or hours paid for Component 2? In other words, should employers count hours for paid time off, paid sick leave, paid holidays, etc.?

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.

Which employees are the hours aggregated for – those who worked during the “workforce snapshot period” or all employees who worked for the employer at any time during the EEO-1 reporting year (e.g., employees terminated before the “workforce snapshot period” or hired after the “workforce snapshot period”)?

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.

If you need assistance preparing these reports please contact OutSolve at info@outsolve.com

EEO-1 Component 2 Survival Kit

Eeo 1 Comp2 Survival Guide

EEOC is required to collect EEO-1 Component 2 pay data for two years

Are you wondering how to organize and format your data for a timely submission? This guide will help.

Get 2019 Comp 2 Survival Kit!

At OutSolve we are not only your consultants but your partners; we urge you to be proactive and have an expert review your data for risk analysis before submitting your information to the federal government.

Video Transcription

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