Make Your Voice Heard: Proposed New Rules Change Could Increase Employer Reporting Burden

In the February 1 Federal Register, the Equal Employment Opportunity Commission (EEOC) announced a proposed rule change to the annual Employer Information Report, or EEO-1, which would require that employers with more than 100 employees report pay data in addition to the information they currently provide on race, ethnicity, sex, and job category. The proposed rule can be found here: http://1.usa.gov/20m4uxj

If the proposed revision is adopted, private employers and federal contractors with more 100 employees would be required to submit data on employees’ W-2 earnings and hours worked as of the September 30, 2017 EEO-1 filing deadline. Federal contractors with 50-99 employees would continue to report on race, ethnicity, and sex by job category, but would not report earnings data; private employers with fewer than 100 employees would continue to be exempt from EEO-1 reporting. 

While the exact drivers of this new proposed rule are unclear at present, it is fair to say that this rule could cause a significant additional burden in terms of updating policies, procedures and systems to track and report this information for employers who are already struggling to keep pace with ever-increasing scrutiny and changes.

For your reference, the current EEO-1 (and proposed Component 1) can be found at http://1.usa.gov/1PJgMKa. An example of the proposed new requirements can be also be found at http://1.usa.gov/1T3v5yw.

The good news for employers is that this is only a proposed rule. Because we understand the challenges such a rule will likely present, we encourage you to make your voice heard. The comment period is now open, and will close on April 1, 2016.

While it may seem daunting, comments submission is simple and can be done in one of three ways: online, hard copy or fax submission. Comments and attachments may be submitted online to the Federal eRulemaking Portal, www.regulations.gov, which includes step-by-step directions. Hard copy comments and all requests to participate in the hearing may be submitted to Bernadette Wilson, Acting Executive Officer, Executive Secretariat, Equal Employment Opportunity Commission, 131 M Street NE., Washington, DC 20507.Comments totaling six or fewer pages may also be sent via fax to (202) 663-4114.

Remember that your comments should be constructive and include sound rationale and, if available, hard data to support your position.

QBS will continue to keep you updated on new developments in this and other regulatory issues. We hope you join us in our ongoing efforts to assist employers by limiting unnecessary additional reporting and administrative work. Together, we can have an impact.