On September 29, 2016, the Equal Employment Opportunity Commission (EEOC) announced a revised EEO-1 Report. The revised EEO-1 Report will now require summary wage data and aggregate hours worked data to be reported by certain employers, in addition to previously required data.
Which Employers Must Submit the Additional Data?
Private employers and federal contractors and subcontractors with 100 or more employees must submit summary pay data and aggregate hours-worked data to the EEOC.
Federal contractors and subcontractors with 50-99 employees will still be required to report data about employees’ race, ethnicity, and sex by job category, but will not have to submit the wage and hour data.
What Does the Report Require?
The EEO-1 report required covered employers to categorize individuals in the workforce by:
- Job category
The new reporting requirements add:
- Summary pay data: 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
- Aggregate hours worked: Tally and report the number of hours worked during the reporting year by all the employees accounted for in each of 12 pay bands
There is no reporting of individuals' wages or hours.
How is Pay Data Calculated?
"Pay" means an employee's W2 earnings, specifically those reported in Box 1 of the W2 form-Wages, tips, and other compensation. IRS directions for that entry are "Show the total taxable wages, tips, and other compensation that you paid to your employee during the year. However, do not include elective deferrals (such as employee contributions to a section 401(k) or 403(b) plan) except section 501(c)(18) contributions."
How is Hours Worked Calculated?
"Hours Worked" means the annual sum of hours (1) a nonexempt employee worked within the meaning of the Fair Labor Standards Act (FLSA) during the EEO-1 reporting year; or (2) an exempt employee worked during the EEO-1 reporting year based on either (a) a proxy of 40 hours per week for a full-time exempt employee, and 20 hours per week for a part-time exempt employee, multiplied by the number of weeks the individual was employed during the EEO-1 reporting year; or (2) actual hours worked by an exempt employee if the employer already maintains accurate records of this information.
When is the Revised EEO-1 Report Due?
The 2017 EEO-1 Report is due by March 31, 2018.
How is Data Used?
EEOC and Office of Federal Contract Compliance Programs (OFCCP) use the survey data to:
- Gain a picture of women and minorities in the workforce
- Support civil rights enforcement
- Analyze employment and pay patterns of women and minorities
The EEOC expects the expanded data from the EEO-1 Report to improve its investigations into pay discrimination based on sex, race, and ethnicity.
Employers required to comply with the new EEO-1 Report don't have to go it alone. Paychex has articles, tools, and other resources to help companies comply with the new EEO-1 reporting requirements.