By Nick Goldstein, vice president of regulatory and legal issues, ARTBA
ARTBA is supporting the Equal Employment Opportunity Commission’s decision to reexamine increased reporting requirements for its employer information report (EEO-1).
Before 2016, the EEO-1 required information on employees’ ethnicity, race, and gender by job category. In 2016, the EEOC expanded the scope of the EEO-1 for firms with 100 or more employees to require that the form include salary data as well, known as “Component 2”. At the time, ARTBA submitted its concerns about the requirement to both EEOC and the Office of Management and Budget.
EEOC continues to reexamine Component 2 and has written the requirement “is far outweighed by the burden imposed on employers that must comply with the reporting obligation.” ARTBA agrees. In April 22 comments to the agency, the association said, “Generally speaking, Component 2 unnecessarily increases the amount of data collected and the administrative burden on affected employers, while not yielding accurate, useful information for its stated purpose. Component 2 also carries security and legal risks for the firms submitting the information.”
ARTBA will continue to monitor this issue as EEOC continues to move forward with data collection for the EEO-1.