On September 29, 2016, the Equal Employment Opportunity Commission (EEOC) issued a press release and related materials to make final the revised proposal to modify the annual EEO-1 report to include W-2 earnings and hours worked by race, ethnicity, and gender.
These new categories increase the number of potential entries significantly, from 140 potential data elements to 3,360. Employers with 100 or more employees will be required to file the new EEO-1 report in March 2018 for the 2017 calendar year. There will be no EEO-1 reports filed during the September 2017 reporting cycle.
What Additional Data Will Be Reported? Covered employers will now be required to report employees earnings and hours worked as follows:
Earnings:
Employers must report W-2 earnings as the “measure of pay” for the new pay data collection report. Employers will use Box 1 of the Form W-2 for the calendar year to complete their EEO-1 filings.
The EEOC notes and exception for hours worked in pay periods that span calendar years: “If wages are actually paid in the next calendar year for work done in the last days of the past calendar year these hours are counted in the next year because that is when the pay is reported on the W-2”
Hours Worked:
Employers must report “hours worked” as a component of the revised EEO-1 form, stating “collecting hours worked is of central importance” to assessing pay disparities. The EEOC adopts the Fair Labor Standards Act’s definition of “hours worked” for non-exempt employees.
The Commission provides two options for employers to report hours worked for exempt employees:
1. a proxy of 40 hours a week for full-time exempt employees or 20 hours for part-time exempt employees; or
2. Actual hours worked if the employer already maintains accurate records of this information.
As with earnings, the hours worked to be reported will be those for the entire calendar year ending the December 31 prior to the reporting deadline.
EEOC has announced two webinars intended to explain the new reporting requirements to employers, on October 20 and October 26, 2016. Check www.eeoc.gov for details.
For the EEOC announcement, Federal Register notice, Revised EEO-1 Instruction book, data file specifications, sample 2017 EEO-1 report, fact sheets, FAQs and additional materials, see https://www.eeoc.gov/employers/eeo1survey/2017survey.cfm.
Practical Impact: If you are an employer required to file an EEO-1 and are not currently reporting hours worked to ADP (for example, you pay by the piece, by the mile, by the route or you have commissioned sales people), you should take steps now to discuss with your Payroll Representative the most efficient way for you to track and report hours. You might also consider utilizing ADP’s time and labor management tool EZLabor Manager. You can contact your HR Business Partner for additional information. We will provide additional details once the final rule is released.
ADP is committed to helping you meet your compliance challenges. For additional information about this or any other Human Resources compliance issue, please contact your HR Business Partner.
This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.