UPDATE!: EEO-1 Pay Data Reporting

UPDATE!: EEO-1 Pay Data Reporting

Last month, we informed our clients and colleagues of the recent, pending decision of whether or not qualifying employers would be required to submit Component 2 (collection of pay data) of the EEO-1 report by May 31, 2019 in addition to Component 1. “Component 2” of the EEO-1 report is intended to analyze pay data to determine any disparities or discrimination in pay, with the goal of improving upon this issue should any discrepancies come to light.  

Last week, the EEOC finally released an update on the requirement to submit pay data. Employers who meet the EEOC’s reporting criteria are required to submit Component 2 of the EEO-1 report for both 2018 and 2017 no later than September 30, 2019.

Note: Employers are still expected to submit Component 1 of the EEO-report by the May 31, 2019 deadline.

The EEOC will begin accepting this component of the report in mid-July from employers who file the EEO-1 report annually who have more than 100 employees (in both the private sector and some federal/government contractors or subcontractors with more than 50 employees). Employers are expected to report pay data which includes hours actually worked and pay data gathered from their employee’s W-2 forms which will be categorized by race, ethnicity, and sex.

2019 EEO-1 Reporting Deadlines:

  • May 31, 2019:  Component 1 data for 2018 is due
  • June 14, 2019: Component 1 data for employers that requested a two-week extension is due
  • July 15, 2019: Expected date employers can begin submitting Component 2 of the EEO-1 report
  • September 30, 2019: Component 2 data for 2017 and 2018 is due

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.

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.

Preparing for EEO Reporting

Summer typically marks that time of year when employers wrap up and finalize the compilation of data collected over the past 12 months for EEO reporting. In recent years, September 30th marked the annual deadline for filing the EEO-1 report, but in September of 2016, the EEOC (Equal Employment Opportunity Commission) announced a revised EEO-1 report, starting in 2017, that would require employers to collect summary pay data in addition to the standard collection of data pertaining to race/ethnicity and sex.

The reason for this change to the data collected and analyzed is to allow the EEOC the opportunity to study and combat pay gaps and discrimination, particularly for women and minorities. The revised EEO-1 report will (ideally) help obtain the information needed to identify pay discrimination.

This update applies to employers with 100 or more employees, and with this new reporting process, the EEOC and the Joint Reporting Committee have given employers more time to aid in this transition, extending the reporting deadline to March 31, 2018. Employers will have a total of 18 months, from September 30, 2016 (the 2016 reporting deadline) through March 31, 2018 (the 2017 reporting deadline) to track data and make this change to their reporting process.

Employers with 50-99 employees will be required to collect data on sex and race/ethnicity (as they had done in the past), and employers with fewer than 50 employees are not required to submit a report. The same reporting deadline of March 31, 2018 applies to all employers required to file.

This mid-point of the year, even with the extension of the reporting deadline, is a great opportunity for employers to review their data collection process and the information they have already collected. Make sure that the data that you’ve been collecting since September of 2016 is accurate and complete, and ensure that your process for collecting information on race/ethnicity, sex, and pay is streamlined and an efficient use of both your and your employees’ time. This mid-year review can help you identify any errors or necessary changes, saving you time in the long run.

HRCentral specializes in assisting employers with establishing processes for collecting data, creating Affirmative Action Plans (AAPs), organizing and compiling information collected, and filing the EEO-1 repand other applicable reports (such as the VETS-4212 report). Contact us today if you have any questions regarding the updated EEO-1 reporting process or for assistance in filing.

Nuts-and-Bolts: EEO and VETS Reporting Refresher

It is that time of year again and the window for annual reporting is quickly closing in on us. For the reporting period for the 2014-15 year, the filing deadline for filing the annual VETS4212 report is September 30th. In a recent Nuts-and-Bolts blog post, we discussed the changes to the annual VETS reporting, and how these updates will impact employers who are required to file.  (more…)