A Potential Ticking Time Bomb? EEO-1 Report due May 31st
If you haven’t heard of the EEO-1 Report and you employ more than 100 employees, then get ready… because there’s about to be another compliance responsibility on your to-do list. The EEO-1 Report is a compliance survey mandated by federal statute that requires company employment data to be categorized by race/ethnicity, gender, and job category.
The suggested method for collecting this demographic information is via survey, ideally as part of the on-boarding process and stored in your company’s HRIS platform. If you did not collect demographic data at the date of hire, here’s a link to an employee survey to use.
The EEOC requires you to group all employees into one of 10 pre-selected categories and must span across the employer’s chosen “snapshot” pay period (must be between October 1stand December 31st). Those categories are as follows:
Executive/Senior Level Officials and Managers
First/Mid Level Officials and Managers
Administrative Support Workers
Laborers and Helpers
The consensus among experienced HR professionals is that category selection tends to be one of the most stressful parts of the reporting process. Luckily, the EEOC has provided an extensive guideline for helping to determine position fit. Click here for the guide.
Penalties for non-compliance have been inconsistent, but the government has stated that making willfully false statements can be punishable by fine or imprisonment.
The magnitude of this reporting requirement highlights the importance of keeping clean and robust records as well as putting serious thought into your organization’s HR infrastructure. The companies that have embraced technology and have built a unified payroll and HR platform will have no trouble complying. On the other hand, the companies that are over 100 employees but have not embraced tech should get started implementing a system before “Component 2” of EEO-1 is due in September.
“Component 2” is significantly more challenging and I will detail the requirements in a future blog post where I’ll share my one-on-one interview with an EEO official from the Miami branch.
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Disclaimer this information is not to be used as Legal Advice.