On August 29, 2017, the Office of Management and Budget (OMB) initiated an immediate and indefinite postponement of the pay/hours data collection aspects of the new EEO-1 form (also known as “Component 2” of the report) that was approved on September 29, 2016. The OMB will be conducting a review of the pay/hours data collection in Component 2 of the report to determine whether or not the data collection violates the requirements of the Paperwork Reduction Act (PRA), among other requirements.
Details of the Change:
Before the postponement became effective, the EEO-1 report approved on September 29, 2016required employers to report employee data in two components:
- Sex and ethnicity or race data (no change to previous requirements).
- Using a new “workforce snapshot period” between October 1 and December 31.
- Summary pay data about the total number of full and part-time employees during the reporting year in each of 12 pay bands listed for each EEO-1 Job Category. Employers were required to use earnings reported in Box 1 of the W-2 Form.
- Aggregate hours worked data about the number of hours worked that year by all the employees accounted for in each pay band.
Victoria Lipnic, the acting Chair of the Equal Employment Opportunity Commission (EEOC), issued a statement on August 29, 2017, about what employers should do for the upcoming reporting deadline:
- The previously approved EEO-1 form which collects data on race, ethnicity and gender by occupational category will remain in effect. Employers should plan to comply with the earlier approved EEO-1 (Component 1) by the previously set filing date of March 2018.
For More Information:
The EEOC is expected to issue more formal guidance in advance of the upcoming March 2018 reporting deadline. For up to date information about the EEO-1 Report, you can visit the EEOC website.
Our experts provide timely, essential insights and analysis for HCM leaders. We share fresh strategies and practical tips for businesses of all sizes, thoughts on hot topics and industry trends, and the latest legislative updates.View Collection