EEO-1 reporting is a compliance survey mandated by federal law that requires companies to submit employment data by the categorizations of race/ethnicity, gender and job category. EEO-1 reporting has been stayed since fall of 2017. It was slated to go into effect March 31, 2018, however, the Office of Management and Budget (OMB) stayed the implementation of the pay data collection portions of the EEO-1 report. This decision led to a lawsuit against the OMB and EEOC. On March 4, 2019, the Court vacated the stay and put back into place the EEO-1 report requiring collection of both demographic and pay data.

The EEO-1 report must be completed by all private employers with 100 or more employees, including employers that may have less than 50 employees and are in a controlled group with another company that, in total, has over 100 employees, and all federal contractors and their first-tier subcontractors with 50 or more employees and contracts of at least $50,000. From there, employers must determine if a single-establishment company form can be completed or, for multi-establishment companies, if they must complete a report for the headquarters, a separate report for each branch with 50 or more employees, and a consolidated report for all branches with fewer than 50 employees.

Employers required to report must use one pay period from the fourth quarter of the current survey year. For the reporting due May 31, 2019 and September 30, 2019, data from the fourth quarter of 2018 should be used.

EEO-1 Due Date: Component 1
Component 1 for 2018 of the EEO-1 reporting data is due by May 31, 2019. This part of the EEO-1 information will contain employee counts by race/ethnicity and sex in each of the ten job categories:

  1. Executive/Senior Level Officials and Managers
  2. First/Mid-Level Officials and Managers
  3. Professionals
  4. Technicians
  5. Sales Workers
  6. Administrative Support Workers
  7. Craft Workers
  8. Operatives
  9. Laborers and Helpers
  10. Service Workers

The EEO-1 report is currently available for Component 1. Additional information on how to login or get set-up for the first time can be found here.

EEO-1 Due Date: Component 2
Component 2 data is required to be provided for 2017 and 2018 by September 30, 2019. Data for 2017 is included on this due date since the reporting had been stayed prior to its due date in 2017.

Component 2 data is a bit more detailed. To obtain Component 2 data, employers need to look at the total annual hours worked as defined under FLSA for all employees that were employed during the payroll snapshot period being reported on. Employers will also want to capture the W-2, Box 1 data for those same individuals. From there, employers will be reporting the total number of employees by race/ethnicity within certain pay bands as well as the total number of hours worked by those employees.

Next Steps
While this collection of data remains under scrutiny, employers need to be prepared to report the requested data. Employers will need to select an applicable pay period and gather the following information on employees within that timeframe:

  • Race/Ethnicity
  • W-2, Box 1 Wages
    • For exempt employees that don’t log ‘actual hours,’ employers may use 20 hours/week for part-time employees and 40 hours/week for full-time employees
  • Fair Labor Standards Act (FLSA) hours worked, which includes time when the employee is actually working, but not meal time, vacation, PTO or other leave, even if a non-exempt employee is paid for that time off and the hours are reflected on the W-2 data

Employers should, at a minimum, ensure the data on employee race/ethnicity by job category is gathered and submitted by May 31, 2019. A sample of the EEO-1 report for this information is available on the EEOC’s website.

Employers can complete the filing here. On the main page, employers can also find information on who to contact regarding mergers, acquisitions and spin-offs that occurred between January 1, 2018 and December 31, 2018.

The employer login page can be found here.

First Time Filer?
Companies that have never filed before, called “first time filers,” needing to register their company should do so here.

A few important items:

  • If your company has multiple establishments and EINs, you’ll need to enter data separately for each establishment by selecting the correct type of report for each establishment. Per the EEOC:
    • A single-establishment company does business at only one physical address.
      • Single-establishment companies are only required to submit one EEO-1 data record/report.
    • A multi-establishment company does business at two or more physical addresses.
      • Multi-establishment companies are required to submit a separate report for the headquarters, a separate report for each establishment of the company with 50 or more employees, a separate report for each establishment with fewer than 50 employees, and a consolidated report that includes all employees.
  • When you move from one screen to the next, your data will be automatically saved. The EEOC has stated the application saves as you go, so if you close your browser, you should be able to return another day to finish.
  • If you were required to file for previous years and failed to do so, there's no way to file for previous years. At this time, the focus should be on completing the information being requested for the 2019 due dates.

We'll continue to monitor the EEO-1 reporting for any updates as the September due date approaches.

Please contact your Assurance representative with any questions.

Information contained herein is not intended to constitute tax or legal advice and should not be used for purposes of evading or avoiding otherwise applicable regulatory responsibilities as issued by the federal or state government(s) and/or taxes owed under the Internal Revenue Code. You are encouraged to seek advice from your legal or tax advisor based on your circumstances.