The Equal Employment Opportunity Commission (“EEOC”) collected 2017 and 2018 pay data from employers on the EEO-1 form. The pay data collected, referred to as Component 2, was the subject of controversy because the broad pay bands and job categories render the data essentially meaningless in terms of determining the existence of pay discrimination. In 2019, the EEOC decided to stop collecting the Component 2 data. Nevertheless, the EEOC collected such data from around 70,000 employers.
Last week, the EEOC released a data dashboard with information from employers’ Component 2 reports. The data is aggregated based on the 19 industries listed on the EEO-1 report. Despite the limited efficacy of the data, some general observations can be drawn. For example, men are more likely to be listed in the higher pay bands than women.
Although the EEOC no longer collects Component 2 data, California and Illinois require many employers to provide pay data reports. Moreover, the EEOC indicated that it is interested in more pay data collection in the future. We will continue to monitor developments in this area on the federal and state level.