The 411 on EEO-1: Your top 7 questions, answered
Even those well versed in regulation can get confused when it comes to new and changing requirements. Such is the case with the new EEO-1 report, which is different for the 2017 compliance season.
For those of you who are affected by this change, we’ve pulled together the answers to your top questions about the new report.
1. Where does the EEO-1 regulation come from?
The EEO-1 requirement is set by the Equal Employment Opportunity Commission (EEOC), a division of the Department of Labor focused on eliminating discrimination in the workplace. The EEOC has had the EEO-1 requirement for several years now but decided this year to juice up the report to gain more valuable data and insight.
2. Why is EEO-1 changing?
The original EEO-1 wasn’t giving the amount or the type of information the EEOC thought was valuable. More specifically, it didn’t give any insight into pay equality or discrimination in the workplace—mainly because there was no requirement to include employee wages and hours worked. To get a fuller picture of what is really going on, the EEOC decided to refine and expand the information the EEO-1 gathers.
3. Who needs to report?
Any private business with over 100 employees, and any government-contracted business with over 50 employees and a contract worth at least $50,000 needs to report.
4. What information is needed to complete EEO-1?
Gender, race, and ethnicity all need to be reported by the employee. Job descriptions (such as senior-level managers, technicians, or laborers), W-2 wages (as they fall into pay bands provided by the EEOC), and hours worked need to be reported by the employer.
5. Are there penalties associated with EEO-1 noncompliance?
Yes! Penalties for failing to report or reporting false information are steep. There can be fines and, in extreme cases, even jail time.
6. When is the reporting deadline?
EEO-1 reports for 2017 are due by March 31, 2018. Make sure to collect, organize, and submit all your data on time!
7. What is the best way to ensure I properly submit the EEO-1 report?
EEO-1 reporting won’t be simple. The amount of information, the number of sources it’s coming from, and the lengths needed to ensure auditability make for a challenge. However, you can take steps to simplify the process. For one, make sure you’re keeping accurate, frequently updated data. Track promotions, hours worked, and other crucial information in a standardized way, especially if your business has multiple locations.
Second, investing in technology can make a huge difference to your reporting. Look for ways to simplify the hourly tracking process (such as reliable, automated payroll technology) and aggregate the information needed to complete the report to take a lot of the strain out of reporting.
SyncStream’s intelligent EEO-1 reporting solution, EEO-1 Comply, was designed specifically for this purpose. It collates, organizes, and translates data from disparate sources into reportable EEO-1 information, and it helps employers track and manage employee responses for the self-submitted portion of the report, so they can ensure a complete and auditable record.
Change creates questions
As the EEO-1 reporting deadline nears, make sure to keep an eye on the changes and take steps to tackle them smoothly: Stay on top of your data, leverage technology, and inform your employees of their responsibilities for reporting.
EEO-1 may have changed, but with the proper preparation, this requirement doesn’t have to be a hassle.