Implementation of the New EEO-1 Report is Still Uncertain

In a few weeks, the 2nd quarter of calendar year 2017 will roll in. With the fate of the new EEO-1 Report still uncertain, most contractors are, understandably, getting anxious. Will the EEOC implement the changes or will it table the implementation until further review? Should contractors prepare for the September 30, 2017 filing or will they have more time to prepare for the first deadline of March 31, 2018?

Two weeks after being named as the acting chair of the EEOC, Victoria Lipnic, in her first public comment in February, addressed the requirements for filing the EEO-1 reports under the new regulations. She expressed that there is a need to re-evaluate the costs and benefits of the revised EEO-1 reporting – something that falls directly under the mandate of the Trump administration for all agencies to “rethink the regulations they have on the books.” Although Ms. Lipnic was vocal about her dissenting vote on the modifications, she was also quick to point out that the commission operates by vote, and, therefore, the agency’s current position cannot be altered by only one commissioner.

In addition to filing gender and race data, the new EEO-1 Form requires all employers (private and federal) with 100 or more employees to report summary pay data by gender/race. Employers will be required to indicate the total number of full/part time employees and total hours worked within 12 pay categories for each of the 10 EEO job classifications. Data collected through the EEO-1 report is accessed by the OFCCP for the purposes of establishing their audit list, however, summary pay data for federal contractors and subcontractors will be routed directly to the OFCCP. The EEOC and the OFCCP, in their respective capacities and responsibilities, see the inclusion of pay in the EEO-1 report as an integral tool for more effective and efficient investigations of pay discrimination. The federal contracting community-at-large applauds the efforts but questions the usefulness of 12×10 aggregated pay data for investigation of pay discrimination.

‘Retool and prepare now or wait and see?’, that is the question. Many federal contractors are holding out hope that the Trump administration will eliminate pay data requirements and revert back to the previous EEO-1 reporting requirements.  Many contractors aren’t waiting and, in anticipation of the change, have developed a game plan and/or methodology for structuring their data for submittal. For those who are still holding out hope, it is recommended that you be proactive and at least consider creating a test file to assess your gaps in data.

Steps to creating a test file:

  1. Export from your payroll software or connect with your payroll service provider, payroll or compensation department to retain a list of employees (with employee ID’s), their associated W-2 (Box 1) pay and hours worked for the 2016 calendar year.
  2. Export from your HRIS the requisite demographic data for all employees (as required).
  3. Create a single data file by merging payroll with HRIS employee data files.
  4. Sort pay in ascending order, create a new column and then create and label each employee in accordance with their corresponding EEO-1 report compensation band.
  5. Verify that your data aligns with the EEO-1 report format through Pivot Tables.

Additional factors to consider when compiling total number of hours worked:

  1. How is the organization capturing the actual hours worked for exempt employees
  2. How the reported total hours will affect compensation analysis (i.e., hours worked of part time employees and exempt employees).

Still feeling lost?  Check out the EEOC website, recent EEOC webinar, or contact a Biddle EEO/AA Specialist at staff@biddle.com.

Independent of the changes to the EEO-1 form and requirement of submitting summary pay data, best practices, laws and regulations dictate that contractors should review their compensation system and analyze their data to ensure equal pay and eliminate disparities.


Article co-authored by John Piatt, Director of EEO/AA Client Support & CERT, Biddle Consulting Group, Inc.

EEOC EEO-1 Report Data Collection Webinars

On September 29, 2016, the U.S. Equal Employment Opportunity Commission (EEOC) announced that it will start collecting the summary employee pay data from federal contractors and subcontractors. The new data will be added to the annual Employer Information Report or EEO-1 report, coordinated jointly by the EEOC and the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP). Please note that only contractors with 100 or more employees will report the summary pay data (i.e., contractors with 50-99 employees will continue to report employees by job category, sex, and ethnicity/race, without having to report the new data). In lieu of the September 30, 2017 filing deadline, the 2017 New EEO-1 report will have to be submitted on March 31, 2018, giving employers 18 months to prepare.

EEOC staff is offering FREE webinars on October 20 and October 26, in which they will provide information on the data collection, as well as answer any questions that you may have. If interested, please sign up now for one of the following schedules (since both webinars will cover the same topics). After registration, an email confirmation will be sent with a personalized access link and instructions to connect the webinar.

October 20, 2:00pm ET (11:00am PT): http://ems7.intellor.com?do=register&t=1&p=707690 (FULL)
October 26, 2:00pm ET (11:00am PT): http://ems7.intellor.com?do=register&t=1&p=707692 (FULL)

Note: Both sessions are full at this time. For those who weren’t able to register, BCG will monitor the EEOC’s website and redistribute the recorded webinar as it is posted. In addition, BCGi will attempt to record the EEOC’s webinar on October 20th, and, where legally able to do so, make that available to all BCGi members.

President Obama Announces Proposed Revision to EEO-1 Report

Today, President Obama announced a proposed revision to the existing EEO-1 report. The revision, which is one of many issued by the administration focused on narrowing the pay gap between men and women, will require companies with 100 or more employees to submit pay data by gender and race. The announcement falls on the seven-year anniversary of the Lilly Ledbetter Fair Pay Act and expands on the Notice of Proposed Rulemaking issued on August 6, 2014.

The intention of the revision is to incorporate two components into the EEO-1 report that employers submit annually by September 30 of each year. The first component will consist of the same data currently collected, including race, gender, and job category. The second component will include employees’ W-2 earnings and hours worked. The 2016 EEO-1 filing period will require only the first component with the second component being added for the 2017 filing period. Starting in 2017, employers with 100 or more employees must file component two, while employers with 50-99 employees will continue to only submit component one.

The revision will be published in the Federal Registrar on February 1, 2016 and written comments on the notice must be submitted no later than 60 days after its publication. Specifically, the Commission seeks public comment regarding their estimated burden calculations to enable it to:

  1. Evaluate whether the proposed collection of information is necessary for the proper performance of the Commission’s functions, including whether the information will have practical utility;
    1. Improve the accuracy of the Commission’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;
    2. Quantitative information about the burden associated with completing the currently approved EEO-1, as well as the anticipated estimated burden to also submit pay and hours-worked data, and
  2. Data regarding the estimated time that staff will spend to report the employer’s pay and hours-worked data and the corresponding wage rates for that staff.
  3. Enhance the quality, utility and clarity of the information to be collected, and
  4. Minimize the burden of the collection of information on those who are required to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses.

It is important for employers to submit their comments and concerns to ensure that the EEOC has the opportunity to review and take employer’s concerns into consideration.

Proposed Revisions (PDF):
https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-01544.pdf

Sample of how new reports will look under the proposed revision:
http://www.eeoc.gov/employers/eeo1survey/2016_new_survey.cfm

For more information about the President’s announcement, please visit:
https://www.whitehouse.gov/the-press-office/2016/01/29/fact-sheet-new-steps-advance-equal-pay-seventh-anniversary-lilly

BCGi (Biddle Consulting Group’s Institute for Workforce Development) will be conducting a webinar to review the proposed revisions, provide members with the opportunity to voice their concerns in a private forum and will submit responses on behalf of its members.  Please look for further announcements through BCGi.

For additional questions related to this Proposed Revision or equal opportunity, affirmative action planning, and compensation analyses please contact a Biddle Consulting Group consultant at (800) 999-0438 or staff@biddle.com

EEO-1 Filing Multi-establishment Employers – Special Procedures

Multi-establishment employers who take advantage of the EEOC’s Special Procedures do so to better align their data with the realities of their organizational structure.   According to the FAQs and EEO-1 Instruction Booklet multi-establishment employers must follow special procedures when:

EEO-1 Frequently Asked Questions (FAQs)
If the establishments that are located at the same address AND have the same NAICS code and the same FEIN, the establishments MUST be combined into only one report. If your company is unable to combine these records due to corporate structure, please consult Item #5 “Requests for Information and Special Procedures” found in the EEO-1 Instruction Booklet.

EEO-1 Instruction Booklet
5. REQUESTS FOR INFORMATION AND SPECIAL PROCEDURES

An employer who claims that preparation or the filing of Standard Form 100 would create undue hardship may apply to the Commission for a special reporting procedure. In such cases, the employer must submit, in writing, a detailed alternative proposal for compiling and reporting information to:

The EEO-1 Coordinator
EEOC-Survey Division
1801 L Street, NW
Washington, DC 20507

Only those special procedures approved in writing by the Commission are authorized. Such authorizations remain in effect until notification of cancellation is given. All requests for information should be sent to the address above.

However, Biddle has received clarification from the EEO-1 Joint Reporting Committee indicating that contractors do not need to follow special reporting procedures when an address and NAICS are the same but the FEIN is different.

In summary:

  1. Establishments located at the same address, with the same NAICS and the same FEIN must file for Special Procedures to submit those establishments separately
  2. Establishments located at the same address, with the same NAICS and different FEINs are able to submit without seeking special procedural relief.
  3. Employers that have a combination of both must seek relief through Special Procedures.

If you have questions regarding EEO-1 submittal or need assistance, please feel free to contact Biddle Consulting Group’s EEO/AA Department.