EEO-1 - Horton Management Law

EEO-1 Data

The EEO-1 survey requires covered employers to identify the number of employees they have in various job categories based on several demographic groups.

The EEO-1 job categories are:

Executive/Senior Level Officials and Managers

First/Mid-Level Officials and Managers

Professionals

Technicians

Sales Workers

Administrative Support Workers

Craft Workers

Operatives

Laborers and Helpers

Service Workers

Within these job categories, employers must provide the number of employees based on sex and race/ethnicity from among these options:

Hispanic or Latino

White

Black or African American

Native Hawaiian or Pacific Islander

Asian

Native American or Alaska Native

Two or more races

Employers must attempt to allow employees to self-identify among these groups. If an employee declines to do so, then the employer can rely on existing employment records or observer (e.g., manager) identification to complete the survey.

The EEO-1 is a snapshot report as of a single pay period in October, November, or December. Thus, it does not necessarily reflect all individuals who worked for the company during the survey year.

Not Unprecedented

EEO-1 filing was also delayed last year.

Toward the end of the Obama administration, the EEOC planned to modify the EEO-1 report to include wage and hours data beginning with reports of 2017 data. The Trump administration, however, rejected that expansion.

Though it’s not clear whether that situation alone prompted the move, the EEOC postponed the filing deadline to June 1, 2018, for 2017 data. So, barring a further postponement this year, employers have one fewer day (albeit a Saturday) to submit the 2018 EEO-1 surveys.

What Should You Do Now?

If you’re not already sure, check to determine whether your company must file a 2018 EEO-1. If you will be filing for the first time, make sure you know what data to use. You might also need to obtain employee self-identification of ethnicity. Then check back with the EEOC in early March to confirm the procedure for filing this year.

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In February 2016, the U.S. Equal Employment Opportunity Commission (EEOC) modified the Form EEO-1 reporting requirements. The EEOC later revised the form itself on September 29, 2016. The new rules would require private employers with 100+ employees to include wage and hours data on the new Form EEO-1 beginning March 31, 2018.

However, on August 29, 2017, the Office of Management and Budget (OMB) informed the EEOC that it was suspending the new pay data collection requirements pending further review.

Existing Form EEO-1 Obligations

Private employers with 100+ employees must annually report employee data on race, ethnicity, and gender by occupational category.

In addition, many federal contractors with less than 100 but more than 50 employees also must file these EEO-1 reports.

Covered employers must file by March 31 for the preceding calendar year.

Objections to the New Form EEO-1

The U.S. Chamber of Commerce has led the opposition to the pay data components of the new Form EEO-1. It sent an extensive comment letter to the Director of the OMB on February 27, 2017. Notably, the letter specifically requested suspension and review of the 2016 changes.

The Chamber’s letter emphasized various potential deficiencies in the 2016 rulemaking.

Highlights of the letter include:

“EEOC failed to identify any significant or tangible benefit the revised EEO-1 report would generate, thereby failing the requirement that it maximize the benefit to be derived from the report.”

“EEOC ignored the significant privacy and confidentiality concerns raised in the review process . . . . The EEOC is proposing to collect highly sensitive personal data regarding compensation at thousands of U.S. companies in a format which will not serve any of its statutory purposes but which will certainly be of great use to any hacker who is interested in the compensation practices of employers.”

“Given the enormous costs associated with compliance . . . it is imperative that OMB review the information collection and either issue a stay in the effectiveness of its prior approval or rescind its prior approval altogether . . . .”

The Chamber of Commerce’s February 27, 2017 letter is available in its entirety here.

Current Regulatory Policy

The additional EEO-1 reporting obligations created in 2016 are inconsistent with the current administration’s views on federal regulations.

President Trump’s January 30, 2017 Executive Order on Reducing Regulation and Controlling Regulatory Costs stated that “it is essential to manage the costs associated with the governmental imposition of private expenditures required to comply with Federal regulations.”

What Should Employers Do?

The EEOC’s statement on the suspension of the new Form EEO-1 pay data requirements notes that:

“Employers should plan to comply with the earlier approved EEO-1 (Component 1) by the previously set filing date of March 2018.”

This will include demographic information (race, ethnicity, and gender) as in the past. But it will not include information about compensation or hours worked.

The EEOC will provide additional information about the EEO-1 based on OMB’s review.

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Tag: EEO-1

Delayed Filing for 2018 EEO-1

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