OFCCP Reports It Will Not Use EEO-1 Component 2 Pay Data

November 22, 2019 – The OFCCP has officially stated via Federal Register notice that it will not use the EEO-1 Component 2 Pay Data.

The OFCCP stated that it will not request, accept, or use Component 2 data as it does not expect to find significant utility in the data given limited resources and its aggregated nature, but it will continue to receive EEO-1 Component 1 data.

Federal contractors had concerns about OFCCP’s intentions with the compensation data and welcomed the confirmation.

The notice indicates the OFCCP reviewed the parameters of the EEO-1 Component 2 data collection and has determined that it does not find Component 2 data necessary to accomplish its mission to ensure federal contractors are not engaged in unlawful pay discrimination.

Even though the use of the pay data for the OFCCP has been settled at this point, the future collection of pay data in general remains open. The EEOC held a public hearing on this matter where it heard testimony and feedback on the current Component 2 Pay Data collection form and reporting of pay data.

Speediware will continue to monitor the process and requirements and will continue to provide its clients to tools to be in compliance.