A federal court ruling issued on March 4, 2019, has reinstated the employee pay data collection requirements of the Employer Information Report EEO-1, otherwise known as the EEO-1 report.
The reporting requirements of the EEO-1 survey were initially expanded to include employee pay data during the Obama administration, in hopes to better assess allegations of pay discrimination. The additional data requirement includes employee W-2 wages and hours worked hours broken down by employee job category, race/ethnicity, and gender, within 12 pay bands.
But those requirements were stayed in 2017 by the Office of Management and Budget due to concerns over the effectiveness of the data collection.
“Employers should have a plan to gather the employee pay information, if not already collected,” advises Michele Kauinui, Director of Human Resources.
“Depending on the size of the company—and resources available—some may want to be proactive and others may want to take more of a wait-and-see approach, given that the ruling is likely to be appealed.”
The reinstatement comes just 12 weeks before the extended May 31, 2019 deadline to submit the 2018 EEO-1 survey. This leaves many employers uncertain about how the surprise ruling will affect their submission of data—especially since the reporting portal was set to be opened without capturing employee pay data.
The situation is still developing, so employers should keep a close eye on the latest legal developments.
For more information on the EEO-1 report, visit the U.S. Equal Employment Opportunity Commission website.
What is the EEO-1 Report?
The EEO-1 report is the EEOC’s annual workforce diversity questionnaire. The data collected is used to support civil rights enforcements and to analyze employment patterns, such as the representation of female and minority workers within companies, industries, or regions. Failure to submit the report and/or false reporting could rules in fines, lawsuits, and/or imprisonment.
Who must file an EEO-1 Report?
Private employers with at least 100 employees, as well as select federal government contractors, are required by law to complete and file the Employer Information Report EEO-1 with the Equal Employment Opportunity Commission’s Joint Reporting Committee (EEOC’s JRC).
This article is for general informational purposes only and does not constitute legal advice. Readers should first consult their attorney, accountant or adviser before acting upon any information in this article.