On April 25, a federal judge announced a ruling that will require employers to collect 2018 employee pay data by race, ethnicity and gender and submit it to the Equal Employment Opportunity Commission (EEOC) by September 30, 2019. For the latest updates, visit our EEOC resource hub.
For more than five decades, employers were required to submit the EEO-1 report by September 30 of each year. In 2018, that date changed to March 31. And this year, many employers were preparing to meet that deadline. But on February 1, 2019, the Equal Employment Opportunity Commission (EEOC) notified all employers of an extension. The deadline to submit EEO-1 data was moved to May 31, 2019.
Why the Extension to File the EEO-1 Report?
Like many other federal agencies, the EEOC was impacted by the government shutdown. With resources stretched thin, the agency was unable to open the EEO-1 filing website as planned in January. As a result of the delay, employers were granted a two-month extension to continue gathering necessary data to accurately file the report.
How Should Employers Proceed?
If you’re required to file the EEO-1 report, you should be prepared to meet the new May 31 deadline. The electronic portal for employers to submit information is set to open in early March 2019. And while there’s been some chatter that the EEOC may further extend the deadline, this is only speculation. We recommend gathering and submitting the required information by May 31, 2019.
Need a refresher on the EEO-1 Report and what’s required? Check out the short recap below:
EEO-1 Reporting 101
Who’s Required to File?
All private employers with 100 or more employees, all federal contractors and first-tier subcontractors with 50 or more employees and all financial institutions/government depositories with 50 employees or more are required by federal law to categorize employment data by race, ethnicity, gender and job category.
What’s the Purpose of the EEO-1 Report?
The EEO-1 report is used to review employment practices, patterns and identify any instances of workplace discrimination. The EEOC and the Office of Federal Contract Compliance Programs (OFCCP) review the EEO-1 report to determine which employers should be further evaluated for any compliance violations.
In spring of 2019, the EEOC announced that employers are required to file Component 2 (pay data) by September 30, 2019. Component 2 data now requires employers to include the hours employees work and pay information from their W-2 forms by race, ethnicity and gender within 12 proposed pay bands. For more information on the requirements, check out this article.
This information is not intended as legal or tax guidance. Please consult your tax advisor or attorney with specific questions.
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