On September 29, 2016, the Equal Employment Opportunity Commission (EEOC) finalized a new rule that will expand the data employers are required to collect in the EEO-1 report.
The current EEO-1 report requires company employment data to be categorized by race, ethnicity, gender and job category. The new rule will require employers to accurately track and report the number of hours employees work, identify their employees’ earnings over a 12-month period and classify employees in one of 12 pay bands.
Which employers will be affected?
Employers, including federal contractors, with 100 or more employees will be required to report aggregate W-2 income and hours worked by gender, race, ethnicity and job category. Federal contractors with 50-99 employees would not report pay data but continue to file the current EEO-1 report.
What does this mean for your organization?
The amount of additional data employers will be required to provide is significant. Employers will need a time solution to accurately track non-exempt employees’ hours throughout the year. Employers will also need one database for HR, payroll and time tracking to efficiently and accurately generate the necessary data to file new EEO-1 reports.
When will organizations be required to comply?
The new regulation requires employers to track employee data beginning January 1, 2017 and file the updated EEO-1 report by March 31, 2018.
What are the penalties?
If an employer is found to have engaged in pay discrimination, it could face litigation from the EEOC and liability for back wages and other damages.
With separate solutions for HR, time and payroll, collecting critical employee data will require more manual work and could lead to inaccuracies that result in audits and penalties. Paycor’s all-in-one solution ensures HR, time and payroll data is easily accessible in one location. Contact us and learn how we can help your organization prepare for the new regulations.
This information is not intended as legal advice. You should seek specific legal advice before acting with regard to the subjects mentioned herein
Source: U.S. Equal Employment Opportunity Commission
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