EEOC Announces Approval of Revised EEO-1
September 30, 2016
On September 29, 2016, the U.S. Equal Employment Opportunity Commission (EEOC) announced approval of its revised Employer Information or EEO-1 report, which employers must file with the EEOC annually to report demographic information about their workforces. On March 31, 2018, private employers, including federal contractors, with 100 or more employees must include summary compensation and hours-worked data in their annual EEO-1 report. Specifically, covered employers will be required to report employees’W-2 earnings and hours-worked data, broken down by gender, race, ethnicity, and by 12 pay bands in each of the 10 EEO job categories.
The new reporting requirements do not affect employers’ 2016 EEO-1 report due on September 30, 2016. However, beginning in 2017, the annual filing deadline will be pushed back from September 30 of the reporting year, to March 31 of the following year. Accordingly, the first time employers’ must file the EEO-1 reports containing the new data is by March 31, 2018.
To accommodate the EEO-1’s new filing schedule, employers’ annual EEO-1 “workforce snapshot” period (the time period during which employers survey their employees) will shift from the third quarter to the final quarter of the calendar year, beginning with the EEO-1 report due on March 31, 2018.
Since last February when the EEOC published its initial proposal to collect this additional data, the employer community has repeatedly voiced strong objections and concerns regarding the use of W-2 data; the ability to accurately track employees’ hours-worked; the utility of the information being collected; the increased burden and costs that were not accurately considered in the EEOC’s proposal; and insufficient safeguards to protect the privacy of the data. Unfortunately, these genuine concerns largely have gone unheeded. Aside from changing the EEO-1 reporting schedule so that employers will not have to issue an additional W-2, in the final EEO-1 the EEOC made no other substantive changes from the agency’s initial proposal.
Although the EEOC has posted an assurance on its website that the agency “maintains robust cybersecurity and privacy programs,” and will require employers to choose a new password to access their next report, these warning will do little to allay employer concerns regarding the security of their data.
For federal contractors, it is important to note that EEOC shares EEO-1 data with the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP). The EEOC is prohibited by Title VII from releasing any individual EEO-1 data, with EEOC employees subject to criminal penalties if they are involved in such a release. However, the EEO-1 Report data shared with OFCCP has more limited protections under the exemptions to the Freedom of Information Act.
Next Steps
The EEOC will be offering webinars on October 20 and 26 and providing technical assistance through email and the agency’s hotline to help businesses comply with the new requirements.
Additionally, employers should consider the following steps in 2017 as they prepare for the new EEO-1 reporting requirements:
- Assemble a team with the necessary subject matter expertise that typically includes legal, HR, compensation, timekeeping, payroll, and other affected areas. The assessment team should evaluate the company’s current capabilities promptly, so that there is sufficient time to undertake necessary updates and changes to systems and reporting capabilities.
- Review the payroll and HRIS systems to determine where the earnings and hours-worked data are maintained, and whether the new, expanded data requirements can be met from the current systems. Typically, modifications may be required in order to be able to collect hours worked data.
- If the company uses a separate system for payroll, then consult with the company’s IT representatives to complete any necessary updates of their HRIS systems to accommodate and integrate the additional data.
- Employers who rely upon outside vendors to generate W-2 forms, and do not maintain the information internally (specifically the individual employee earnings reported in Box 1) will need to review their contracts and confer with their vendor to determine the most efficient way to import the W-2 data to the system(s) that are used for preparing the new EEO-1 report.
- Determine whether the company will use the permitted default entries of 40 hours (full time) and 20 hours (part-time) for exempt employees or will provide exempt employees’ actual hours, either by tracking hours worked or determining whether the employees’ work hours are available from other records, e.g., log-ins, federal contracting billing reports, etc..
- Employers should ensure that all reasonable steps are taken to protect the confidentiality of their data once it is in the agencies hands.
Please contact either the FortneyScott attorney with whom you work or Leslie Silverman, Esquire from FortneyScott for additional information or advice on complying with the new EEO-1 reporting obligations.
EEOC is expected to open the portal for submission of 2024 EEO-1 Component 1 Report on May 20, 2025. On May 12, 2025, the Office of Information and Regulatory Affairs (OIRA) of the Office of Management and Budget (OMB) approved the proposed changes to the 2024 EEO-1 Component 1 Report. The EEOC had submitted the revised 2024 EEO-1 Component 1 Data Collection Instruction Booklet and justifications for the changes to OMB on April 15. The primary change for employers is the elimination of the report’s non-binary reporting option in response to President Trump’s Executive Order 14168, Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government . In addition, EEOC will no longer provide the “Notice of Failure to File” letter to employers with incomplete or unfiled EEO-1 Reports and updated the procedures for requesting an undue hardship. According to the EEOC’s 2024 EEO-1 Component 1 Data Collection Instruction Booklet, employers will have a much shorter filing period to file their reports than in previous years as the portal will close on June 24, 2025 . With this significantly shorter filing period (which is nearly a month shorter than last year), employers should begin collecting their data as soon as possible. One additional note, although Executive Order 11246 was rescinded by President Trump on January 21, 2025, the Booklet notes that federal contractors with 50 or more employees will still be required to file EEO-1 Reports on their 2024 data. FortneyScott will provide an update as soon as EEOC officially announces the opening of the portal for submission of 2024 EEO-1 Component 1 Reports. If you have any questions, please reach out to your FortneyScott attorney.
Most of the remaining employees of the Department of Labor’s Office of Federal Contract Compliance Programs received layoff notices this week as the plan to drastically downsize the Office in the wake of Executive Order 14173 proceeds. Affected workers at the OFCCP got a 30-day warning in advance of their June 6th terminations. The agency plans to maintain a presence only in the Southwest region, with a headquarters in Dallas.
President Donald Trump has nominated Brittany Bull Panuccio, an assistant U.S. attorney in Florida, to the U.S. Equal Employment Opportunity Commission. If confirmed, her term would run to July 2029. Panuccio's confirmation would restore the Commission's quorum and create a Republican majority. The reconstituted Commission would be able to issue or withdraw regulations and institute policies in the line with the Trump administrations’ positions. She will join EEOC's Acting Chair, Andrea Lucas, a Trump appointee (renominated), and Commissioner Kalpana Kotagal, who was appointed by President Joe Biden.
Today, the DOL published a Field Assistance Bulletin (FAB) to provide enforcement guidance to the DOL’s Wage and Hour Division (WHD) field staff when determining whether an independent contractor has been misclassified under FLSA. Specifically, the DOL’s Press Release states that the agency is still reviewing the 2024 final rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act (2024 Rules) and, therefore, WHD investigators are directed not to apply the 2024 Rule when determining employee versus independent contractor status in FLSA investigation. Instead, investigators are told to rely on the prior version of Fact Sheet 13 that was issued in July 2008 which is included in the FAB, and reinstated Opinion Letter FLSA 2019-6 with respect to any matter for which no payment has been made for back wages and/or civil money penalties as of May 1, 2025. It's important to note that the 2024 Rule remains in effect for purposes of private litigation and nothing in this FAB changes the rights of employees or responsibilities of employers under the FLSA. Employers should review the FAB and the additional documentation to understand how the current Administration will enforce independent contractor misclassification. Should you have any questions, please reach out to your FortneyScott attorney.
As employers navigate evolving legal, political, and cultural dynamics in the workplace, certain core obligations remain as critical as ever. This webinar will focus on three areas of the law that deserve renewed attention in 2025 and beyond: Barrier Analysis: With many employers scaling back or eliminating formal DEI initiatives, barrier analysis has become an essential—and legally sound—tool to identify and prevent workplace discrimination. We’ll explore how employers can use barrier analyses to effectively meet compliance goals and mitigate legal risk. Pay Practices: As state-level requirements continue to expand, pay practices remain central to legal compliance. We’ll break down what employers need to do now to stay ahead of audits, meet transparency mandates, and proactively address pay disparities. Accommodations: Religious and disability-related accommodation requests are on the rise. We’ll discuss recent legal developments and best practices for managing accommodation requests consistently and lawfully.
Employment Law: What Hasn't Changed?
EEOC is expected to open the portal for submission of 2024 EEO-1 Component 1 Report on May 20, 2025. On May 12, 2025, the Office of Information and Regulatory Affairs (OIRA) of the Office of Management and Budget (OMB) approved the proposed changes to the 2024 EEO-1 Component 1 Report. The EEOC had submitted the revised 2024 EEO-1 Component 1 Data Collection Instruction Booklet and justifications for the changes to OMB on April 15. The primary change for employers is the elimination of the report’s non-binary reporting option in response to President Trump’s Executive Order 14168, Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government . In addition, EEOC will no longer provide the “Notice of Failure to File” letter to employers with incomplete or unfiled EEO-1 Reports and updated the procedures for requesting an undue hardship. According to the EEOC’s 2024 EEO-1 Component 1 Data Collection Instruction Booklet, employers will have a much shorter filing period to file their reports than in previous years as the portal will close on June 24, 2025 . With this significantly shorter filing period (which is nearly a month shorter than last year), employers should begin collecting their data as soon as possible. One additional note, although Executive Order 11246 was rescinded by President Trump on January 21, 2025, the Booklet notes that federal contractors with 50 or more employees will still be required to file EEO-1 Reports on their 2024 data. FortneyScott will provide an update as soon as EEOC officially announces the opening of the portal for submission of 2024 EEO-1 Component 1 Reports. If you have any questions, please reach out to your FortneyScott attorney.
Most of the remaining employees of the Department of Labor’s Office of Federal Contract Compliance Programs received layoff notices this week as the plan to drastically downsize the Office in the wake of Executive Order 14173 proceeds. Affected workers at the OFCCP got a 30-day warning in advance of their June 6th terminations. The agency plans to maintain a presence only in the Southwest region, with a headquarters in Dallas.
President Donald Trump has nominated Brittany Bull Panuccio, an assistant U.S. attorney in Florida, to the U.S. Equal Employment Opportunity Commission. If confirmed, her term would run to July 2029. Panuccio's confirmation would restore the Commission's quorum and create a Republican majority. The reconstituted Commission would be able to issue or withdraw regulations and institute policies in the line with the Trump administrations’ positions. She will join EEOC's Acting Chair, Andrea Lucas, a Trump appointee (renominated), and Commissioner Kalpana Kotagal, who was appointed by President Joe Biden.
Today, the DOL published a Field Assistance Bulletin (FAB) to provide enforcement guidance to the DOL’s Wage and Hour Division (WHD) field staff when determining whether an independent contractor has been misclassified under FLSA. Specifically, the DOL’s Press Release states that the agency is still reviewing the 2024 final rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act (2024 Rules) and, therefore, WHD investigators are directed not to apply the 2024 Rule when determining employee versus independent contractor status in FLSA investigation. Instead, investigators are told to rely on the prior version of Fact Sheet 13 that was issued in July 2008 which is included in the FAB, and reinstated Opinion Letter FLSA 2019-6 with respect to any matter for which no payment has been made for back wages and/or civil money penalties as of May 1, 2025. It's important to note that the 2024 Rule remains in effect for purposes of private litigation and nothing in this FAB changes the rights of employees or responsibilities of employers under the FLSA. Employers should review the FAB and the additional documentation to understand how the current Administration will enforce independent contractor misclassification. Should you have any questions, please reach out to your FortneyScott attorney.
As employers navigate evolving legal, political, and cultural dynamics in the workplace, certain core obligations remain as critical as ever. This webinar will focus on three areas of the law that deserve renewed attention in 2025 and beyond: Barrier Analysis: With many employers scaling back or eliminating formal DEI initiatives, barrier analysis has become an essential—and legally sound—tool to identify and prevent workplace discrimination. We’ll explore how employers can use barrier analyses to effectively meet compliance goals and mitigate legal risk. Pay Practices: As state-level requirements continue to expand, pay practices remain central to legal compliance. We’ll break down what employers need to do now to stay ahead of audits, meet transparency mandates, and proactively address pay disparities. Accommodations: Religious and disability-related accommodation requests are on the rise. We’ll discuss recent legal developments and best practices for managing accommodation requests consistently and lawfully.
Employment Law: What Hasn't Changed?
During this webinar, FortneyScott's experienced practitioners will: Catalogue of the Administration’s activities focused on Higher Education; Trace the trends across agencies; Discuss expanded use of Title VI; and, Provide practical guidance for all employers.
On March 24, 2025, the U.S. Department of Labor (DOL) announced Catherine Eschbach as the new Director of the Office of Federal Contract Compliance Programs (OFCCP). In an email to OFCCP staff, Director Eschbach announced that under her leadership, all reform options are on the table and “most of what OFCCP has been doing is out of step, if not flat out contradictory to our country’s laws.” Her email went further to outline “OFCCP’s transition to its new scope of mission”: Verifying that federal contractors have wound down their affirmative action efforts 91 days after President Trump’s EO 14173 rescinded EO 11246. Examining federal contractors’ prior submissions to determine whether there are any indications of discrimination and whether OFCCP should undertake additional investigations. Advising the Secretary of Labor of measures to deter DEI as required by Section 4 of EO 14173. Determining statutory authority for Section 503 and VEVRAA and whether they should be housed elsewhere in Labor Department. “Rightsizing” the staff and geographic footprint of agency. Federal contractors should pay particular attention to the last bullet above. The new Director indicates that OFCCP will review prior submissions from closed audits to review for illegal DEI. If you receive any communication from OFCCP, or other federal agencies, with regard to past submissions or requesting additional information from closed audits, please contact your FortneyScott attorney immediately With this transition of enforcement for OFCCP, federal contractors need to take the necessary action and steps to ensure they understand and comply with the new obligations as outlined in EO 14173 and above. FortneyScott is assisting many of its clients in these matters. Please reach out to your FortneyScott attorney should you have any questions.
On March 19, the Department of Justice (DOJ) and Equal Employment Opportunity Commission (EEOC) released two technical assistance documents addressing “unlawful DEI,” a 1-page summary, What to Do if You Experience Discrimination Related to DEI at Work , and a longer question and answer (Q&A) document, What You Should Know About DEI-Related Discrimination at Work . In the documents, the agencies remind employees and employers that Title VII prohibits employment discrimination based on protected characteristics, such as race and sex, and that any decisions motivated, in whole or in part, by a protected characteristic are unlawful. The EEOC press release reiterates that “[t]he widespread adoption of DEI, however, does not change longstanding legal prohibitions against the use of race, sex, and other protected characteristics in employment” and the accompanying DOJ press release notes that “[u]nder Title VII, DEI initiatives, policies, programs, or practices may be unlawful if they involve an employer or other covered entity taking an employment action motivated—in whole or in part—by an employee’s or applicant’s race, sex, or another protected characteristic.” The EEOC’s technical assistance document also states that Title VII’s protections apply equally to all workers not just to minority groups. Finally, these official documents provide employees, who question their employers’ DEI practices, with instructions on how to file charges with the EEOC. In the technical assistance document, the EEOC provides the following examples of DEI practices that could be considered to violate Title VII: “Balancing” a workforce based on protected characteristics was provided as an example of unlawful conduct; DEI training may give rise to a colorable hostile work environment claim if a reasonable person would consider it intimidating, hostile, or abusive; Opposition to DEI training may be a protected activity if the employee believes that the training violates Title VII; and, Employee resource groups (ERGs), or similar programs, may violate Title VII’s prohibition of segregating employees if they are not open to all. Although the Supreme Court has not yet ruled on whether an “operational need” for diversity can justify voluntary affirmative action efforts under Title VII, the EEOC is taking the position that a company’s “diversity interest” is not a bona fide occupational qualification (BFOQ) justifying decisions based on protected characteristics. Should you have any questions regarding these or other developments, please contact your FortneyScott attorney. For additional information, be sure to visit FortneyScott’s website and the new Resource Page on Compliance with Trump Administration Changes, including our prior Webinars and Podcasts .
Trump Administration’s Focus on Higher Education
