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The EEO-1 Reporting Deadline 2023 for the collection of 2022 EEO-1 data is a moving target. The Equal Employment Opportunity Commission (EEOC) has announced that the submission window will likely open in mid-July 2023 but has not specified an exact day. When it does, employers required to file an EEO-1 Report will have just weeks to do so using data from a pay period in the fourth quarter of 2022.
Another unknown this year is whether the EEOC will return to requiring Component 2 in its EEO-1 employee pay reporting requirements. Component 2 reporting was discontinued in 2019, but there’s some expectation that the EEOC will reinstate the requirement this year. Updates for 2022 EEO-1 data collection will be posted to https://www.eeocdata.org/eeo1 as they become available.
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Employers with more than 100 employees and federal contractors or first-tier subcontractors with 50 or more employees must annually submit EEO-1 demographic data on their workforces. EEO-1 reporting is federally mandated by Title VII of the Civil Rights Act of 1967 and the Equal Employment Opportunity Act of 1972 – both of which prohibit employment discrimination based on race/ethnicity, religion, gender and national origin.
The EEOC uses EEO-1 reporting data to support enforcement actions, facilitate research on employment patterns and encourage self-assessment by employers, who can reference their annual reports to monitor their ongoing diversity efforts. And, while the EEOC keeps all individual company EEO-1 data confidential, it makes aggregated data available to the public.
For 2023, Component 1 of the EEO-1 Report remains unchanged from previous years. It requires organizations to summarize employee headcount by race/ethnicity, sex/gender and job category.
Component 2 expands on the requirements of Component 1 by asking employers for more detailed pay data about workers, such as a breakdown of hours worked and information from Box 1 of employee W-2s (by race/ethnicity and sex). Component 2 also allows employees to self-identify their race, ethnicity and gender, and employers may use the information provided by employees at the time of hiring if they decline to self-identify.
By requesting more specifics regarding employee pay, Component 2 pay reporting was designed to help close the gender and race pay gaps. EEO-1 Component 2 data can help to identify potential pay disparities and discrimination across different demographic groups.
The EEOC and the Office of Federal Contract Compliance Programs analyzed this data to assist in enforcing federal laws that prohibit pay discrimination based on race, ethnicity and gender and to promote equal pay practices in the workplace.
The process of collecting and reporting Component 2 data is designed to encourage equitable compensation. It can provide companies with a “snapshot in time” of how well they are or are not achieving pay equity.
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Qualifying companies are legally required to electronically submit EEO-1 Reports to the EEOC portal during the submission window. Apart from federal government contractors running the risk of losing their contracts by failing to comply with EEO-1 reporting requirements, the EEOC does not level penalties for non-participation – however, it’s in every relevant business’s long-term best interests to comply.
Not submitting the required reporting could, for example, impact the outcome of an EEOC investigation into a company’s pay practices. One of the first things EEOC representatives do when investigating a discrimination or harassment complaint against an organization is to review the company’s EEO-1 Reports. A history of compliance and transparency could help them determine whether a complaint has merit.
As with other repetitive HR and compliance tasks, EEO-1 reporting is an annual obligation that takes time small business owners could otherwise spend on growing their companies. Certified professional employer organization Axcet HR Solutions handles EEO-1 Reports for its clients, making the process fast, painless and turnkey by:
Contact Axcet today to learn more.
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