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EEO-1 Pay Data Requirements on Indefinite Hold

The EEO-1 report is changing once again. Recently, the new pay data and hours worked requirements announced last year were suspended indefinitely by the Office of Information Regulatory Affairs. While employers will report Equal Employment Opportunity (EEO) information in a familiar format, they need to be aware of key date changes.

3 important changes

The biggest change to the report is the suspension of the requirement to report pay data and hours worked. For 2017, employers will report in the prior 2016 format, which only collects data on race, ethnicity and gender by occupational category. When the new EEO-1 requirements were announced by the Obama administration last year, the 2017 reporting deadline was moved from Sept. 30, 2017, to March 31, 2018.

According to an Equal Employment Opportunity Commission (EEOC) statement, “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.” Additionally, the previously approved “workforce snapshot” period of Oct. 1 through Dec. 31 will remain in effect. Therefore, employers must submit reports based on a payroll period within that time frame.

Summary of the changes:

  • The deadline to file EEO-1 reports for 2017 is March 31, 2018;
  • Reports must be based on a payroll period in October, November or December of 2017; and,
  • Employers may use the same EEO-1 form used in 2016.

The EEOC has not yet fully updated its website to reflect this new information, but the home page provides some explanation.

Pay data requirement gone?

The pay data and hours worked requirements simply have been suspended. Until the Office of Management and Budget (OMB) completes its review of the rule, their future is unclear. The OMB is concerned that some aspects of the revised rule “lack practical utility, are unnecessarily burdensome, and do not adequately address privacy and confidentiality issues.” The acting chair of the EEOC, Victoria Lipnic, has been vocal with her opposition to the pay data requirement, which she voted against when it was initially proposed.

Although the EEO-1 report appears to be ditching the pay data requirement, state governments may step in to fill the void. Under a proposal in California, employers in the state with more than 500 employees would be required to submit information to the Secretary of State on gender wage differentials. Although this measure has not been signed by the governor, employers should monitor this legislation, which would go into effect in 2019.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.