03 May 2017

Two Minute Update: EEO-1 Reports: Are You Ready?

Under the EEOC’s revised EEO-1 Report, employers are required to collect aggregate W-2 earnings and hours worked and report the number of employees by race and sex in each of twelve pay bands for the ten EEO-1 job categories.  This is a major departure from the current EEO-1 form.

In recent weeks, there has been a lot of speculation that the revised form may be repealed or revised by the Trump administration.  Many employers have been critical of the revised EEO-1, claiming it will not reveal any pay disparities and the EEOC has not fully explained how the data will be used.

In order to repeal the revised EEO-1, there would need to be a majority vote from the EEOC Commissioners. The Commission has five seats, and only four are currently filled. Three of the four are Democrats.  However, Jenny Yang’s term expires in July. This means that Trump will be able to appoint two new Commissioners this summer.

Victoria Lipnic, the EEOC’s new acting chair, voted against the new pay data reporting requirements and has stated that revised EEO-1 is the type of regulation targeted by Trump’s directive to halt and re-evaluate new and pending rules.  However, Lipnic has also stated that equal pay remains a priority for the EEOC.  So, it’s possible that she would back a revision of the form, rather than repeal.

However, until there is official movement to repeal or revise the form, we recommend that employers continue preparing their payroll and HRIS systems to comply with the more onerous EEO-1 reporting obligations.  The March 2018 reporting deadline may seem far away.

But the workforce snapshot period for gathering reportable data starts on October 1, 2017.

Stay tuned for developments.