Jul 31, 2017

Preparing for the New EEO-1 Report

employee salaries

In 2016, the Equal Employment Opportunity Commission (“EEOC”) announced that the EEO-1 Report would now require covered employers to provide wage and hour information, in addition to demographic information, for employees.  Employers will choose one pay period to count employees by job category, sex, race or ethnicity.  The new report must contain each employee’s annual earnings as reflected in box 1 of their Form W-2, as well as the total number of hours worked throughout the year.  The EEO-1 Report must be filed electronically.  Because the new data from 2017 must be collected and reported, the EEO-1 Report must be filed by March 31, 2018, rather than the usual September 30th deadline.

Who must file and which component of the EEO-1 form must be filed:

Component 1 only (employees’ ethnicity, race, and sex, by job category):  Federal contractors that (1) are not exempt as provided for by 41 CFR 60-1.5; (2) have 50 to 99 employees; (3) are prime contractors or first-tier subcontractors, and (4) have a contract, subcontract, or purchase order amounting to $50,000 or more or serve as depositories of Government funds in any amount, or are financial institutions which are issuing and paying agents for U.S. Savings Bonds and savings notes.

Component 1 and 2 (summary pay and hours-worked data):

  1. All private employers who are (1) subject to Title VII of the Civil Rights Act of 1964, as amended, with 100 or more employees EXCLUDING State and local governments, public primary and secondary school systems, institutions of higher education, American Indian or Alaska Native tribes and tax-exempt private membership clubs other than labor organizations; OR (2) subject to Title VII who have 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.
  2. All federal contractors who (1) are not exempt as provided for by 41 CFR 60-1.5; (2) have 100 or more employees; (3) are prime contractors or first-tier subcontractors; and (4) have a contract, subcontract, or purchase order amounting to $50,000 or more; or (b) serve as depositories of Government funds in any amount; or are financial institutions which are issuing or paying agents for U.S. Savings Bonds and or savings notes.

What are the EEO-1 pay bands?
(1) $19,239 and under;
(2) $19,240 – $24,439;
(3) $24,440 – $30,679;
(4) $30,680 – $38,999;
(5) $39,000 – $49,919;
(6) $49,920 – $62,919;
(7) $62,920 – $80,079;
(8) $80,080 – $101,919;
(9) $101,920 – $128,959;
(10) $128,960 – $163,799;
(11) $163,800 – $207,999, and
(12) $208,000 and over.

Employers will count the number of employees they have in each pay band for each job category. If no employees are in a job category or pay band, employers will leave the cell blank in the EEO-1 report.  After tallying the total number of employees in each pay band by job category, employers will enter this data in the appropriate columns based on the sex and ethnicity or race of the employees.

All reports and any information from individual reports are confidential and may not be made public by the EEOC prior to the institution of any proceeding under Title VII involving the EEO-1 data.

 

This client alert is intended to inform clients and other interested parties about legal matters of current interest and is not intended as legal advice.  If you have any questions regarding these issues, please contact your Labor and Employment Counsel at Smith, Gambrell & Russell, LLP.