Companies Required to Report Their Workforce Data

June 10, 2019|

There are some new EEO-1 reporting requirements for companies with over 100 employees.

Most large companies are aware of the EEO-1 Report, a federally mandated survey that collects workforce data categorized by race, ethnicity, sex and job category. Under Title VII of the Civil Rights Act (Title VII), employers with 100 or more employees and certain federal contractors must report this data to the Equal Employment Opportunity Commission (EEOC) by March 31 every year.

Because of the partial government shutdown earlier in the year, however, the EEOC extended the deadline for 2018 EEO-1 reports to May 31.

This deadline applies only to 2018 EEO-1 “Component 1” data. Employers subject to EEO-1 reporting have a new requirement this year regarding information about employee pay and work hours, also known as EEO-1 “Component 2” data. This year, Component 2 data from both 2017 and 2018 is due no later than Sept. 30, 2019.

Background

On Sept. 29, 2016, the EEOC announced that it would begin requiring certain employers to add information about their employees’ wages and hours of work to their EEO-1 reports. This was to be reported using a revised EEO-1 form that labels the new requirements as EEO-1 Component 2 data.

Due to concerns about the burden that the Component 2 requirements would place on employers, the federal Office of Management and Budget (OMB) blocked them in August 2017. As a result, employers did not have to include pay or hours-worked data on their 2017 EEO-1 reports (which were due July 1, 2018).

On March 4, 2019, however, the U.S. District Court for Washington, D.C., issued a decision that reinstated the EEO-1 Component 2 requirements. Two weeks later, the 2018 EEO-1 officially opened, with no way for employers to enter the Component 2 data.

The court addressed this the next day, March 19, by ordering the EEOC to announce how it plans to collect the Component 2 data on the 2018 EEOC-1. The court also ordered the EEOC to collect the Component 2 data from either 2017 or 2019 in addition to the 2018 Component 2 information.

On May 3, the EEOC announced that it will require employers to submit the Component 2 for both 2017 and 2018 by Sept. 30, 2019.

Employers Subject to EEO-1 Reporting Requirements

With limited exceptions, the following entities must file EEO-1 reports every year:

  • A private employer that has 100 or more employees (with limited exceptions for schools and other organizations);
  • A private employer with between 15 and 99 employees, if it is part of a group of employers that legally constitutes a single enterprise, which employs a total of 100 or more employees; and
  • A federal contractor that has 50 or more employees and is either a prime contractor or first-tier subcontractor, and has a contract, subcontract or purchase order amounting to $50,000 or more.

Although the EEOC sends notification letters to employers it knows to be subject to the EEO-1 requirements, all employers are responsible for obtaining and submitting the necessary information prior to the appropriate deadline. An employer that fails or refuses to file an EEO-1 report as required may be compelled to do so by a federal district court. Federal contractors also risk losing their government contracts for failures to comply.

If the preparation or filing of an EEO-1 report would create undue hardship, an employer may send a written request for an exemption or for special reporting procedures to the EEOC. Employers may also obtain a one-time, 30-day extension of the EEO-1 filing deadline by emailing a request to the EEOC. However, the EEOC does not grant any exemptions or extensions requested after the filing deadline.

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