EEO-1 Reporting 101

EEO-1 Reporting 101

The May 31st deadline for submitting your organization’s EEO-1 report is just around the corner, which means for many of us that it is time to start finalizing and reviewing gathered information needed for annual EEO-1 reporting. In our last post, we discussed recent progress in the decision of whether or not employers additionally need to report on pay data for their employees, which provided a great opportunity to go back to the basics: EEO-1 Reporting 101.

The EEO-1 Report is a compliance survey that is mandated by federal regulations and statutes. Some of the most frequent questions asked pertaining to EEO-1 reporting include: who needs to file, what do you need to report and why, and when do you have to do all of this?

Who: The most commonly asked question with regards to EEO-1 reporting is who needs to file and what are the requirements for that organization? The criteria are as follows:

  • Private employers/organizations with more than 100 employees (subject to certain exemptions); or
  • Organizations with fewer than 100 employees who are owned by or are corporately affiliated with another company whose entire enterprise employs a total of 100 or more employees; or
  • Federal government prime contractors (private employers) who are not subject to any exemptions, have 50 or more employees, and are first-tier subcontractors with 50 or more employees and a prime contract or a first-tier subcontract totaling $50,000 or more OR serve as a depository of government funds in any amount OR are a financial institution which is an issuing and paying agent for U.S. Savings Bonds and Savings Notes.

What: If the organization meets one of the above requirements, the survey requires them to submit employment data that is categorized by race/ethnicity, gender, and job category which the Equal Employment Opportunity Committee (EEOC) and the Office of Federal Contract Compliance Programs (OFCCP) use to support civil rights enforcement and analyze employment patterns, which in turn help them determine where the likelihood of systematic discrimination is the highest. This online submission must include:

  • A report covering the principal or headquarters office;
  • A separate report for each establishment employing 50 or more persons;
  • A consolidated report that MUST include ALL employees by race, sex, and job category in establishments with 50 or more employees as well as establishments with fewer than 50 employees; and
  • A list, showing the name, address, total employment, and major activity for each establishment employing fewer than 50 persons, must accompany the consolidated report.

When: Survey data must be pulled from one year’s pay period from either October, November, or December of the current survey year (e.g., for the 2018 report, pull data from November 1st, 2017 – November 1st, 2018). That data is then analyzed, compiled, and submitted into the EEO-1 form. The most convenient way to submit this data is through the EEOC’s website, in which all data is electronically entered and submitted. A copy of the form is available for your records after submission. EEO-1 reports must be submitted and certified no later than May 31st, annually.

These basic elements are just the beginning when it comes to EEO-1 reporting. There are a number of other steps, requirements, and methods of ongoing maintenance that go into reporting to ensure that the reporting process is accurate, conducted efficiently, and produces the desired outcomes. EEO-1 reporting can be a breeze or a hassle depending on established procedures and participation. As May 31st draws closer, contact us for assistance in gathering employee data, creating efficient processes for pulling information, or for filing on your behalf.

EEO-1 Pay Data Reporting

EEO-1 Pay Data Reporting

In 2010, the EEOC ordered a study in an attempt to determine various ways to improve the prohibition of pay discrimination and determined that there would be great value in analyzing pay data should that information be submitted with standard EEO-1 reports. This study needed approval, and in 2016 the Office of Management and Budget approved this collection of data which would require employers subject to EEO-1 reporting requirements to submit pay data in addition to the standard information on race/ethnicity, gender, and job category. This collection of pay data (known as “Component 2” of the EEO-1 report) was delayed in August of 2017 and in March of 2019, this postponement was lifted.

After years of going back and forth on whether or not there would be a mandatory requirement to report pay data, on April 3, 2019, the EEOC informed the federal government that its current data collection processes were not capable of collecting the required pay information for the Component 2 of the EEO-1 report. Rather, they would have to rely on outside contractors and analytics to gather and review salary information. With the deadline to submit this information of May 31 looming, concerns were raised as to the quality of the gathered data with the short amount of time to collect salary information.

As a result of so many unanswered questions, it is still undetermined if eligible employers will be required to submit Component 2 of the EEO-1 report by May 31, 2019. In the meantime, employers are still expected to submit Component 1 of the EEO-report by this deadline.

While the requirement for salary reporting is still pending, employers are encouraged to start preparations for this change to the reporting process. HRCentral suggests that you create a simple spreadsheet of your current employee’s salaries, including any new hires or terminated employees, similar to what you use for reporting Component 1 of the EEO-1 report.

Don’t wait until the last minute to get this data compiled; HRCentral is here to help you and your HR Department gather and submit data for your organization’s EEO-1 report. Contact us today for assistance in filing or for establishing a streamlined reporting process.