EEO-1 Report Expanded
Information required for the Employer Information EEO-1 Report is on the precipice of expansion.
As background, the EEO-1 Report is a compliance survey mandated by federal law and required to be filed with the Equal Employment Opportunity Commission (EEOC). It requires affected entities to report employment data by race or ethnicity, gender and job category; this is referred to as Component 1 data. The EEO-1 reporting of Component 1 data for 2018 is required to be filed by May 31, 2019.
The EEO-1 Report is required to be filed by:
- Employers subject to Title VII of the Civil Rights Act who employ 100 or more employees. In determining employer size, all employees employed by members of affiliated or commonly controlled entities are counted.
- Federal government contractors and certain subcontractors with 50 or more employees and whose prime contract or subcontract amounts to $50,000 or more.
In 2016, the EEOC proposed to expand the EEO-1 Report to require employers to also include salary information reported on their employees’ W-2, together with hours worked. This is referred to as Component 2 data to the EEO-1 Report (note: Component 2 data is not required to be filed by federal contractors employing between 50 and 100 employees).
However, the Office of Management and Budget challenged the inclusion of the Component 2 data, resulting in a civil action (National Women's Law Center, et al., v. Office of Management and Budget, et al., Civil Action No. 17-cv-2458 (D.D.C.). The EEOC regulations were stayed prior to the date they were to take effect. In March 2019, the District Court, who imposed the stay, directed the EEOC to prepare to collect two years of data, due by September 30, 2019. The EEOC filed an appeal of the Court’s decision on May 3, 2018; however, until the matter is settled, EEO-1 filers are obligated to submit Component 2 data. The EEOC expects to collect 2017 and 2018 data in mid-July, which will be due September 30, 2019.
Component 1 data from 2018 must continue to be submitted through the current EEO-1 portal through May 31, 2019.
What should an employer do?
Employers subject to this reporting obligation should keep an eye on EEOC webpage for developments. In addition, employers should work with their payroll vendors, as well as their legal counsel to ensure proper implementation of the report. Employers will also want to make certain that this additional sensitive data be handled with caution.
The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.