Evaluation of Compensation Data Collected Through the EEO-1 Form (2023) / Chapter Skim
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The panel assumes that future pay-data collections, if they occur, will need only a single yearly instrument. Approximately 73,400 employers filed EEO-1 reports in 2018, covering 56.1 million employees (EEOC, 2018)
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Other EEO Reports EEOC engages in two other information collections, one on union hiring halls (EEO-3 report) and the other for public school districts (EEO-5 8 The EEO-1 race/ethnicity categories are Hispanic or Latino, White, Black or African American, Native Hawaiian or Other Pacific Islander, Asian, American Indian or Alaska Native, and two or more races.
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Additionally, should recommendations be made for future collections of EEO-1 Component 2 data that relate to measures and methods used for other EEOC collections, understanding the full EEOC collection program will be useful. Current Uses of EEO Reports in Enforcement Efforts EEOC currently uses EEO-1 data on workforce composition in enforcement processes, including charge intake, systemic enforcement, selection of commissioner charges, and preparation of special reports.
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and to compare firms under investigation to peer firms in the same industry and geographical region. Commissioner Charges and Directed Investigations Though the vast majority of EEOC investigations are initiated by individual charges, EEOC is authorized to initiate investigations of possible discrimination under Title VII and the ADA, and under ADEA and EPA through "directed investigations" (EEOC, 2019a)
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. These reports identify industries and occupations in which sex and race/ethnicity groups are underrepresented relative to their representation in the local labor market and/or peer establishments, show where progress has been made, and indicate where EEOC commissioner charges and directed investigations may be appropriate.
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The collection of pay data could enable OFCCP to use pay disparities, in addition to compositional patterns, to identify areas for further investigation. Intended Uses of Component 2 Pay Data Support Charge Investigations Identify establishment and job-level pay gaps: during charge investigations, Component 2 data could be used to identify establishment- and job-level pay gaps, as well as occupational and pay-band segregation at particular establishments.
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Comparing the sorting of employees across occupations and pay bands could inform the degree to which internal inequalities are produced by segregation processes. Such information could be used to inform the next steps of the investigation, such as assigning priority and resources to the case, requesting more information from the employer so that analysts could adjust raw pay gaps by individual factors known to affect pay (such as education and job tenure)
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OFCCP could also use pay data to enhance the three-year-trend analyses currently conducted with EEO-1 data during compliance reviews. Analyze National, Regional, and Industry-Based Pay Gaps Component 2 data could be used to estimate national and subnational sex and race/ethnicity pay disparities by industry, occupation, region, or labor market.
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The chapter reviewed the authority given to EEOC to collect pay data to address pay gaps. Through this authority, EEOC collected its first paydata collection from private employers (Component 2)
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, slotted into 12 pay bands. • Sex: Male/female, with non-binary gender reported in a text box for remarks.
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The EEO-4 report limits pay-data information to full-time employees, uses fewer and wider pay bands, and does not collect information on hours worked. Importantly, no federal data collection has captured the breadth of information from private-sector employers that is needed for EEOC's enforcement purposes.1 Although some federal statistical data collections of private employers include pay, sex, race/ethnicity, and occupation information, none collect all these variables, and the resulting data cannot be used for enforcement purposes by law (44 U.S.C.
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Occupational • Annual/weekly wage and • Full-time • Job title write-in Not included • Cannot be used for Employment salary earnings enforcement purposes and Wage • Part-time • Autocoded to Statisticsd (after • Collected as individual SOC 2020) level data • Reviewed by • Analyzed in pay bands human expert Current • Payroll • Hours Not included Not included • Cannot be used for Employment enforcement purposes Statisticse • Dollars paid for full- and • Full-time part-time employees • Part-time continued 43
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TABLE 2-1 Continued 44 Agency Data Collection Measures Included Limitations for Pay-Equity Pay Work Hours Occupation Demographics Enforcement Current • Wage and salary earnings • Usual hours • SOC • Federal standard • No firm-level information Population before taxes and other race/ethnicity Surveyf deductions • Actual hours • Cannot be used for • Binary sex enforcement purposes • Includes any overtime received at main job • Age • Education • Disability • Veterans status Census Longitudinal • Quarterly unemployment Not included Not included • Federal standard • States provide on a Bureau Employer- income earnings by firm race/ethnicity voluntary basis Household Dynamicsg • Sex • Cannot be used for enforcement purposes • Ageh • Educationi American • Wages, salary, bonuses, • Hours • SOC • Federal standard • Cannot be used for Community tips, and commission for race/ethnicity enforcement purposes Surveyj all jobs • Weeks worked • Sex • Produces aggregate tables for EEOCk including by • Non-binary Gender EEO-1 job categories • Age • Not disaggregated by sex and race/ethnicity
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• Education • Disability • Veterans status aEEOC, 2016a.
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Year 2000 2013 2015 2016 Pay Annualized Rate of pay W-2 earnings, W-2 earnings employees' base rate or average slotted into pay Box 1, slotted plus other earningsa annual earnings bands as used by into pay bands computed using OESc as used by OESd total wage and hours Occupational Employment Survey (OES) definition of earningsb Sex Male and female Not specified Not specified Male and female; use remarks section to denote non binary gender Race/ Federal standard Not specified Not specified EEOC Ethnicity race and ethnicity categories categories using of race and combined methode ethnicity Occupation Nine EEOC job Not specified 10 EEO-1 job 10 EEO-1 job categories categories categories Hours Not specified Not specified Hours worked Hours worked; Worked approximate exempt staff hours based on full-time or part-time status if exact records are not kept a"[A]
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. eThe 2000 Equal Opportunity survey instrument collected race as American Indian or Alaska Native, Asian, Black or African American, Native Hawaiian or Other Pacific Islander, and White.
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. The panel recommended that, if pay bands were used, the bands should be the same as those used by OES, because most employers were familiar with the requirements of that large-scale data collection.
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EEOC adopted OES pay bands in the Component 2 data collection but used a more expansive definition of pay, based on Box 1 gross earnings as defined in federal tax law and reported via W-2 reports to the Internal Revenue Service. The W-2 Box 1 earnings definition includes all OES earnings components, plus bonuses, overtime, and shift-differential pay.
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The Sage Computing report did not specifically address whether the 10 EEO-1 job categories should be used but instead focused on how to use them (i.e., collecting aggregate W-2 information using pay bands)
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Specifically, EEO-1 would be fielded as one collection with two related but distinct components, each with slightly different eligibility criteria. Component 1 would comprise the historic form only and Component 2 would add pay data and hours worked to the historic form.6 Intended Use In its OMB request, EEOC stated that collecting summary pay data with the EEO-1 form would "improve the EEOC's ability to effectively assess allegations of pay discrimination and focus investigations, as well as strengthen the Office of Federal Contract Compliance Programs' (OFCCP's)
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This tool would display the distribution of various demographics (e.g., sex, race, and ethnicity) across job categories and across pay bands within job categories.
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subject to Title VII, as amended, with 100 or more employees EXCLUDING State and local governments, public primary and secondary school systems, institutions of higher education, American Indian or Alaska Native tribes and tax-exempt private membership clubs other than labor organizations; OR (2) subject to Title VII who have fewer than 100 employees if the company is owned or affiliated with another company, or there is centralized ownership, control or management (such as central control of personnel policies and labor relations)
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13. EEOC Component 2 Pay Data Project Methodology Report, Redacted.
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. Component 2 Instrument The Component 2 instrument extends the Component 1 instrument by adding pay bands and hours-worked data components (see Figures 2-2, 2-3, and 2-4)
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56 COMPENSATION DATA COLLECTED THROUGH THE EEO-1 FORM FIGURE 2-2 EEO-1 Component 1 instrument, pp.
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IMPLEMENTATION OF THE EEO-1 COMPONENT 2 INSTRUMENT 57 FIGURE 2-2 Continued
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58 FIGURE 2-3 EEO-1 Component 2 instrument Section D (online version)
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FIGURE 2-3 Continued continued 59
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60 FIGURE 2-3 Continued
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