Legal Alert: EEOC Implements Changes to EEO-1 Report

Date   Nov 28, 2006

For the first time in forty years, the EEOC has made changes to the EEO-1 Report, which take effect beginning with the 2007 survey due to be filed by employers on September 30, 2007.

For the first time in forty years, the EEOC has made changes to the EEO-1 Report, which take effect beginning with the 2007 survey due to be filed by employers on September 30, 2007.

The EEO-1 Report, which must be filed annually by private employers with one hundred or more employees and federal government contractors with government contracts of $50,000 or more and 50 or more employees, is an employer-compiled report that provides the federal government with workforce profiles by ethnicity, race and gender divided into several job categories. Employers may use employment figures from any pay period in July through September of the reporting year. Data must include all full-time and part-time employees. Leased, casual and temporary employees are not included in the filing.

According to the EEOC, the new Report recognizes the shifting demographics of today’s workplace. The revised report should better enable the EEOC to accurately monitor the advancements of women and minorities into the upper ranks of management. The EEOC strongly recommends that EEO-1 reports be submitted via the EEO-1 Online Filing System.

The new report requires employers to ask their employees to self-identify by ethnicity and race. The method of data collection consists of a two question format. The race and ethnicity categories are: Hispanic or Latino, which covers all people of Cuban, Mexican, Puerto Rican, South or Central America or other Spanish culture or origin regardless of race; White, not Hispanic or Latino; Black or African American, not Hispanic or Latino, Native Hawaiian or Other Pacific Islander, not Hispanic or Latino; American Indian, not Hispanic or Latino; and Two or More races, not Hispanic or Latino.

In addition to the changes in ethnicity and race reporting, the Job Categories have also been revised. “Officials and Managers” are now divided into two subcategories. The first is “Executive/Senior Level Officials and Managers”. These individuals plan, direct and formulate policy. They provide the overall direction of the organization. The second subcategory, “First/Mid Level Officials and Managers” are the individuals who direct implementation or operation within the parameters established by Executive/Senior Level Management.

Non-Management Officials with expertise in business and financial occupations should now be included as part of the “Professional” job category, and hourly paid supervisors and lead operators who are not members of management should be reassigned from “Craft Workers” to “Operatives”. The “Office and Clerical” job category has been renamed “Administrative Support Workers.”

The EEOC has stated that it strongly prefers the use of self-identification rather than visual observation when gathering data. Only when an employee declines to self-identify may observation or employment records be used.

The EEOC will not mandate that employers resurvey their workforce before submitting their 2007 EEO-1; however, it cautions employers to keep in mind that opportunities to resurvey should be utilized as often and as soon as possible. Employers should begin immediately to take steps to update any software used to track EEO-1 information to include the newly created categories; create or modify post hire forms used to gather EEO-1 information for new employees to include the newly created categories; and distribute updated forms to existing employees to allow self-identification of race and ethnicity.

It is important to note that for federal contractors, the current regulations under EO 11246 still require reporting by original race and ethnic groups. This means you will be required to survey your work force two times -- once for EEO-1 purposes and once for AAP purposes.

Penalties for failure to file EEO-1s can include record-keeping violations and, for federal contractors, debarment.

Employers' Bottom Line:

Newly hired employees should be surveyed under the new requirements for the 2007 Report. Employers are not required to resurvey current employees for the 2007 report; however, these employees should be resurveyed before the 2008 report is filed. If you have any questions regarding the changes to the EEO-1 Report or complying with the changes, please contact the Ford & Harrison attorney with whom you usually work or the author of this Alert, Michelle Harkavy,, 901-291-1533.