EEOC Intends to Drop Pay Data Collection Requirement

The Equal Employment Opportunity Commission announced this week that it does not intend to renew its authority to collect data on employees’ pay and hours worked (known as Component 2 Data) after that authority expires. That expiration is currently set for April 2021, under a federal court order that is under appeal.

The Obama administration had sought to collect Component 2 Data—which calls for submission of 3,660 data points per employer establishment—before the Trump administration halted the effort in 2017. In April 2019, the federal district court in D.C. ordered the EEOC to collect the expanded set of data. Employers with 100 or more employees are required to submit the data for calendar years 2017 and 2018 by Sept. 30, 2019. That requirement is not affected by EEOC’s announcement.

The American Bankers Association expressed significant concern about the burden that collection of Component 2 Data imposes on banks, while providing little, if any, benefit to the government or the public. In August, ABA joined a number of other trade groups in filing a friend-of-the-court brief that urged a federal appellate court to reverse the district court’s order that the EEOC collect Component 2 Data.