On February 1, 2015, the EEOC published a proposed rule that would require employers with 100 or more employees to collect and report employee compensation in their annual EEO-1 filings. The new report, which would include summary pay data and hours worked broken down by gender, race, and ethnicity by each EEO-1 job categories, would be effective with the 2017 reporting period.
According to the EEOC, the compensation data would be used to "assess complaints of discrimination, focus agency investigations, and identify existing pay disparities that may warrant further examination."
The original proposed rules added compensation reporting requirements, including pay data and hours worked, beginning with the reports filed in 2017, for employers with 100 or more employees. Federal contractors with 50 to 99 employees would continue to submit the EEO-1 report without the compensation data.
Under the revised proposed rule issued on July 14, 2016:
- The reporting deadline for 2017 will move from September 30, 2017 to March 31, 2018. This means that there would be no EEO-1 reports filed in 2017.
- The workforce "snapshot" period would be based on any pay period between October 1st and December 31st rather than July 1st through September 30th.
- The income to be reported was clarified to be compensation reported in Box 1 of the 2017 W-2 form.
- The hours worked for exempt employees was clarified as 40 hours per week for full time exempt employees and 20 hours per week for part time employees, multiplied by the number of weeks the individuals worked during the year OR actual hours if the hours were tracked for the exempt employees.
A copy of the revised proposed rule can be viewed on the Federal Register: Revised EEO-1 Proposed Rule.
Employers should note that the 2016 filing requirement has not changed. Employers required to file EEO-1 reports must submit their 2016 reports by September 30, 2016.
Who must file? All private employers with:
- 100 or more employees EXCLUDING State and local governments, primary and secondary school systems, institutions of higher education, Indian tribes and tax-exempt private membership clubs other than labor organizations; or,
- Fewer than 100 employees if the company is owned or affiliated with another company, or there is centralized ownership, control or management (such as central control of personnel policies and labor relations) so that the group legally constitutes a single enterprise, and the entire enterprise employs a total of 100 or more employees.
- All federal contractors (private employers), who are not exempt as provided for by 41 CFR 60-1.5, have 50 or more employees, and
- are prime contractors or first-tier subcontractors, and have a contract, subcontract, or purchase order amounting to $50,000 or more; or
- serve as a depository of Government funds in any amount, or
- is a financial institution which is an issuing and paying agent for U.S. Savings Bonds and Notes.
Federal contractors with less than 50 employees and private employers with less than 100 employees are not required to file an EEO-1 report.