The Employer Information Report (EEO-1) that employers file annually with the Equal Employment Opportunity Commission (EEOC) has been revised to include both W-2 earnings and hours worked by race, ethnicity, and gender. Employers (including federal contractors and subcontractors) with 100 or more employees will be required to file the new EEO-1 report by March 31, 2018, for the 2017 calendar year. Collection of this new data is intended to assist the EEOC in identifying possible pay discrimination and to help employers promote equal pay in their workplaces.

Report changes for 2017
Currently, employers use the EEO-1 form to report the number of employees working for them in a payroll period within the quarter ending on September 30. These counts are divided into ten different job categories, such as executives, technicians, and professionals, and by demographic information: race, ethnicity, and gender.

While employers will continue to report on the number of full-time and part-time employees, they must now report these numbers during a payroll period within the quarter ending December 31. They must also report on those employees’ annual earnings from the W-2 and hours worked for the entire calendar year.

Additionally, employees are now classified into one of 12 “pay bands” (i.e., pay ranges) that fall under their job category, and are then divided into race, category, and gender. The “Section D Hours Worked Report,” which is a separate form, will aggregate the annual hours worked by pay bands, job classification, race, ethnicity, and gender. This significantly increases the number of potential entries on the form. The current report has 140 boxes for employee counts, whereas the revised report has 1,680 boxes with employee counts by pay band/job classification, race, ethnicity, and gender; and another 1,680 boxes for hours worked by pay band/job classification, race, ethnicity, and gender.

Since the EEOC adopts the FLSA (Fair Labor Standards Act) definitions of hours worked, employers can report 40 hours per week for full-time exempt employees and 20 hours for part-time exempt employees, multiplied by the number of weeks worked (actual hours worked for exempt employees can also be reported). Note that wages paid in the next calendar year that are worked in the current year will be counted for the next calendar year, because that is when the pay is reported on the W-2.

HR Knowledge can keep you compliant
Because the EEOC requires that the EEO-1 be filed through their own EEO-1 Online Filing System, there are few options available to employers to make sure all their data is complete and submitted in time. In addition, manually entering all your company’s data for the form can be time consuming.  By partnering with HR Knowledge, we can provide you with the tools you need to complete the EEO-1. While this service comes at a cost, it will be invaluable to making your business EEO-1 compliant.

If you are interested in signing up for these services or need more information, please email us.

This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this advisory, please contact HR Knowledge at 508.339.1300 or email us.