After much waiting, the Equal Employment Opportunity Commission (EEOC) announced on May 2 that employers must turn over 2017 pay data along with their 2018 data by Sept. 30 of this year. This decision comes after a flurry of federal rulings and criticism. With so much information circulating, it’s no wonder many employers are left scratching their heads.
But, not to worry –– Today we’re answering the most important questions about the EEO-1. Here’s what every employer needs to know!
What is the EEO-1 report?
The EEO-1 report is an annual government survey that’s used to collect workforce data. The EEOC and other federal agencies use the collected data to support civil rights enforcement and analyze employment patterns, such as the representation of women and minorities in organizations, industries and regions.
Who is required to file the EEO-1 report?
All US employers with establishments located in any of the 50 states or the District of Columbia are legally required to file the EEO-1 report if they meet any of the following criteria:
- Have 100 or more employees; or
- Have 50 or more employees and have a federal contract (prime contract or first-tier subcontract) amounting to $50,000 or more.
How should employees be counted?
Companies with centralized ownership, control or management should count employees across all of their organizations to determine if they meet the 50 or 100 employee thresholds. Organizations should also err on the side of caution when counting employees. For example, if an employer has met the 50 or 100 employee threshold at some point during the year (and not at other points in the year), they should either file their EEO-1 report or seek legal guidance regarding compliance. For more information, employers can check out the FAQs posted by the EEOC.
What information is collected in the EEO-1 report?
The EEO-1 report is not new — it dates all the way back to 1966. However, it’s undergone a few changes over the years, the most recent of which requires employers to provide more detailed data. The report now includes two components:
- Component 1 requires that employers report the number of employees (headcount) who work for the business, organized by job category, race/ethnicity and sex. This is the data that qualifying employers are already used to providing. Below is a sample of what the Component 1 data report looks like.
- Component 2 requires that employers report employee earnings and hours worked in 12 pay bands by race/ethnicity and sex in each of the current EEO job categories. Below is a sample of the new Component 2 report that will require employees’ pay data.
When are EEO-1 reporting deadlines?
For over five decades, the EEOC required employers to submit EEO-1 data by Sept. 30 of each year. However, in 2018 that date changed to March 31 and then at the start of this year, it was moved again! So, it’s understandable why employers are struggling to keep track of critical EEO-1 dates. Here are the big ones to remember:
- May 31, 2019: Due date for Component 1 data for 2018.
- July 15, 2019: Date that the EEOC expects to make the Component 2 portal available to employers. The EEOC says they will provide additional information and training prior to this date.
- September 30, 2019: Due date for Component 2 data for 2017 and 2018.
Is the required EEO-1 data available in Orbit Solutions?
With May 31 right around the corner, impacted employers should focus their immediate efforts on gathering their 2018 Component 1 data. Payroll Data clients that use our Orbit Human Resources product can use the EEO-1 report for the required Component 1 data.
We will also provide an update on how to access Component 2 data in Orbit Solutions as soon as it is available. Our developers are working to accommodate the new requirements in time for the reporting deadline. Again, we’ll keep you posted as soon as we know more specifics.