The Equal Employment Opportunity Commission (EEOC) announced the 2023 EEO-1 filing process will begin April 30, 2024. The deadline to file the 2023 EEO-1 Component 1 report is June 4, 2024.
The EEO-1 Component 1 report is a mandatory annual data collection requiring all private sector employers with 100 or more employees to file workforce demographic data. Federal contractors with 50 or more employees meeting certain criteria are also required to comply.
The EEOC plans to provide updates to what new filing information is required if any. However, employers can get a jumpstart on their preparations based on previous years’ requirements.
What Employers Need to Prepare
The EEOC strongly encourages eligible filers to begin the filing process as soon as possible.
EEO-1 Component 1 reports are required from the following organizations:
- Private employers with 100 or more employees.
- Private employers with fewer than 100 employees that are affiliated with, or owned by, a parent company with more than 100 employees overall.
- Federal contractors or first-tier subcontractors with 50 or more employees and contracts of $50,000 or more (Executive Order 11246).
- Organizations with 50 or more employees serving as a depository of government funds, or a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes.
Companies must register via the EEO-1 Component 1 Online Filing System (OFS).
Learn More About EEO-1 Reporting
EEO-1 requires employers to submit workforce demographic workforce data, i.e., employee data by race/ethnicity, sex, and job category, including all full-time and part-time employees.
EEO categorizes jobs as follows:
- Executive/senior-level officials and managers
- First/mid-level officials and managers
- Professionals
- Technicians
- Sales Workers
- Administrative support workers
- Craft workers
- Operatives
- Laborers and helpers
- Service workers
Job classification is broadly based on three criteria: responsibilities and primary duties, knowledge, and level of skill the job requires. Reporting also shows how different demographic groups fall into different compensation brackets.
Employees are categorized on their ethnicity and race. For 2023 reporting purposes, these were:
- White (not Hispanic or Latino)
- Native Hawaiian or other Pacific Islander (not Hispanic or Latino)
- American Indian or Native Alaskan (not Hispanic or Latino)
- Asian (not Hispanic or Latino)
- Hispanic or Latino
- Black or African American (not Hispanic or Latino)
- Two or More Races (Not Hispanic or Latino)
The EEOC noted that all updates about the 2023 EEO-1 Component 1 data collection, including the 2023 EEO-1 Component 1 Data File Upload Specifications, will be posted on the EEOC website as they become available. In addition, the EEOC posted the 2023 EEO-1 Component 1 Instruction Booklet for reference.
The EEOC did not mention adding pay data collection to the 2023 EEO-1 filings. Therefore, EEO-1 filers should begin formulating a plan for meeting the deadline for submitting the Component 1 report only. However, it is expected that pay data reporting will be a requirement in the near future.
The Risks of Non-Compliance
While there are no financial penalties for non-compliance, late filing, or failure to file, may lead to penalties, including a court order to file.
Employers may be held in contempt for failing to respond. Federal contractors and subcontractors that fail to comply may have their contracts terminated, or be prohibited from being awarded government contracts in the future.
Companies that willfully falsify EEO-1 reports are at risk of fines, or in some cases imprisonment.
In 2023, the EEOC entered into an alliance with the Department of Labor Wage and Hour Division. Unlawful compensation practices, and employment discrimination based on protected classes are two target areas for potential investigation and enforcement.
Leverage Filing Resources
Leveraging Trusaic’s Workplace Equity product suite can help every applicable U.S. employer in preparing employee pay and demographic data and submitting their EEO-1 forms.
Guidance: Trusaic will provide guidance and support on accurately determining applicability, gathering the necessary data and information for collection and subsequent submission and assistance on when, where and how to submit to the EEOC, including:
- Reviewing EEOC codes against job title, FLSA exempt status and salary.
- Reviewing and validating North American Industry Classification System (NAICS) codes
- Diversity risk assessment.
Data Quality Assurance: Trusaic will run data quality checks to ensure alignment with the standards and definitions provided by the EEOC.
Report Output: Trusaic will provide clients with the correctly formatted output for submission, and ensure accurate and timely EEO-1 Component 1 report preparation.
Leveraging expertise across data, analytics, and regulatory compliance will ensure on-time and accurate EEO-1 reporting for your organization.
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