05/02/2024 | Press release | Distributed by Public on 05/02/2024 08:38
As a business grows, so does its outlook. It might focus on delivering a new product or revitalizing its work culture to better accommodate a wave of new hires. But while a company expands, so does its compliance requirements - like filing an annual Equal Employment Opportunity (EEO-1) report.
EEO-1 reporting requires private employers with 100 or more employees to keep an accurate record of its workforce's makeup, including its:
Navigating this requirement can be daunting, especially if it's your company's first year to respond. So let's get a head start!
First, we'll dive into what the EEO-1 report is, 2023's EEO-1 reporting requirements and why the report matters. Then, we'll consider how the right tools and strategy are key for solid, annual compliance.
The EEO-1 report is an annual summary of a business's demographic and pay data required by the U.S. Equal Employment Opportunity Commission (EEOC). Data for the report must be pulled from a pay period in October, November or December of the current collection year (aka the "workforce snapshot pay period").
In 1964, Title VII of the Civil Rights Act required businesses to maintain yearly records and prove they didn't engage in discriminatory employment practices. The EEOC formalized this process for certain employers in 1966, creating the first true request for EEO-1 data and, by extension, its annual report.
The EEOC will start collecting 2023's EEO-1 data on April 30, 2024. The collection period will close on June 4, 2024. Consult the EEOC's instruction booklet for more detailed information about the collection process.
One goal of the EEO-1 report is to collect data on the employment status of women and people of color. Additionally, the EEOC may use this data to investigate charges of employment discrimination. The EEOC doesn't require businesses that file an EEO-1 report to have a specific workforce composition. It does, however, require organizations to hire and operate equitably.
Again, any private employer with 100 or more employees must file an annual EEO-1 report. But like other employment laws, this requirement only covers most cases. Other organizations required to file an EEO-1 report include:
Remember, consult a licensed attorney to verify if your small business is covered by one of the special cases above.
So you know you need to file an EEO-1 report. But where do you start? First, familiarize yourself with the basics.
The EEOC requires electronic submission of EEO-1 reports through its online filing system. You can choose to either:
If you need to file a paper report, you must request approval to do so.
First-time filers are required to register as such with the EEOC. Once registered, you'll receive a login ID and password for electronic submission.
Now that you know the basics, it's time to begin collecting your employment data - that's any pay period from July to September.
Allow yourself ample time to establish a procedure for collection. Best practice is to allow employees to voluntarily self-identify, but employers may complete the data on their behalf if needed.
Your demographic data must include all full-time and part-time employees.
The 10 major job categories used by the EEOC to classify workers are:
Voluntary self-identification by employees is the preferred method for identifying race and/or ethnicity. The categories used are:
Be sure to reference the EEOC's official instruction booklet to avoid employee misclassification.
California requires employers with 100 or more employees to submit pay data alongside their demographic data.
This year, employers have until May 8 to submit their information to the state's Civil Rights Department. Employers are expected to submit data from a single pay period between Oct. 1 and Dec. 31, 2023 (i.e., a "snapshot period").
Employers should take note of a few changes to this year's reporting requirements:
Strong EEO-1 reporting compliance requires businesses to frequently monitor their workforce's makeup. At the same time, employers have to identify and beat a deadline that can move each year.
Paycom's comprehensive compliance software helps you stay ahead of this deadline and reduce your exposure to:
The tech also simplifies managing workforce data by automatically storing it in a single system of record. This means you don't have to manually enter employee info to provide an EEO-1 report or other federal- or state-requested summaries.
Best of all, Paycom's compliance tool lets you easily build the report, convert it to the EEOC-required format and upload it to the agency's EEO-1 reporting site.
The EEOC doesn't fine companies for not filing EEO-1 reports. However, the commission can obtain a court order to compel a business to provide its EEO-1 report and an organization could be held in contempt for failing to respond.
While national, aggregated EEO-1 data is shared with the public, an individual company's report isn't. Still, employers with 15 or more workers are required to place a "Know Your Rights" poster in a visible and accessible space. This notice reminds employees of their rights and summarizes how they can file a complaint if they believe they've experienced discrimination.
Yes, all part-time employees must be included in the report.
To file an EEO-1 report, you'll need your:
Explore Paycom's resources to learn more about HR compliance, technology and more.