Remember when the Equal Employment Opportunity Commission (EEOC) announced a final version of EEO-1 reporting updates back in September of 2016?
If you’re like most employers, you’ve probably had so much on your plate that the new reporting requirements haven’t crossed your mind. With less than six months until the new filing deadline, here’s a refresher course to help you prepare.
What are the updated requirements for EEO compliance?
The current EEO-1 Report requires company employment data to be categorized by race, ethnicity, gender and job category. The new rule requires 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. According to the EEOC, the new regulations will provide a much needed tool to identify discriminatory pay practices where they exist.
Which employers will be affected?
Under the current proposal, 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 very significant. Employers must prepare to comply with the new regulations by first understanding what’s required. To start, employers must provide information on total compensation and total hours worked by race, ethnicity, gender, EEO-1 category and designated salary bands.
To effectively manage these requirements, employers must ensure that they can accurately and efficiently deliver information required in the report. And with reporting requirements more challenging than ever before, employers need one database for HR, payroll and time tracking to efficiently and accurately generate the necessary data to file the new report.
When will organizations be required to comply?
Employers are required to 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.
To eliminate stress and help your organization prepare, we’ve created an expert EEO-1 checklist so you don’t have to worry about missing critical information when filing. Click here to download the checklist.
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.