Employers often fail to submit their annual EEO-1 Report to the Equal Employment Opportunity Joint Reporting Committee for various reasons. Despite the well-advertised nature of the EEO-1 reporting program, some employers are completely unaware this is a mandatory legal obligation with consequences for failing to file the report timely. Employers tend to experience a range of undue hardships preventing them from timely filing such as internal changes in their HR department, mergers and acquisitions, bankruptcies, technical issues, or being overwhelmed by other day-to-day business operations. Whatever the case, unless the employer submits a request to the EEOC claiming undue hardship, the employer will very likely face penalties for the oversight.
The consequences of failure to file can impact a company’s credibility during an investigation or audit causing a negative impression for any compliance officer. More significantly on aspects of discriminatory charges directly investigated by the EEOC and jurisdictions. Inarguably, the company would most likely be further questioned on their non-discriminatory policy and the assessment of a possible discriminatory allegation. Furthermore, failure to file could result in additional penalties if employers don’t realize their employee records are also not in compliance with the FLSA guidelines enforced by the Wage and Hour Division of the DOL. These negative consequences can happen when there is a lack of clear organization structure, good record keeping practices, and misclassification of employees. Employers can avoid these mistakes by utilizing the following ten tips:
- 1. Determine eligibility and reporting guidelines based on the type of employer.
- 2. Register as a first time user or obtain id and password for the EEOC portal.
- 3. Check the EEOC fact sheet for detailed information on how to file the report.
- 4. Provide self-identification forms to employees with ample time for response.
- 5. Collect all data for the report.
- 6. Confirm the appropriate classification of each employee per EEOC guidelines on your HRIS.
- 7. Provide ample time to analyze data and for technical hiccups.
- 8. Provide certification of accuracy and authenticity.
- 9. File the report timely online or by any other EEOC-approved method.
- 10. Track changes in EEO-1 reporting.
In Conclusion, the EEO-1 is a compliance survey mandated by the EEOC and obligatory for employers who meet the criteria. This is a legal requirement for all employers that have at least 100 employees. It also applies to federal contractors with 50 or more employees and prime federal contractors or first-tier subcontractors with a contract(s), subcontract, or purchase order amounting to $50,000 or more. Local and State governments, public elementary and secondary school districts, and unions, have a separate submission reporting form and schedule. The employer may be exempt by the guidelines under 41 CFR 60-1.5. The survey also requires a certification of accuracy and authenticity. Completing the survey heavily depends on systematic recording and storage of employment data classified by ethnicity, race, gender, and job category. Self-identification is preferred. Depending on the company’s ease of retrieving and extracting this data, creating the EEO-1 report could become a lengthy project causing employers to miss the deadline. Do not procrastinate! Plan for ample time to deal with any corrections that may require timely approvals and technology errors or possible calls to the EEOC help desk. The best way to start is by reviewing your organization structure and correcting any classification data to be consistent with the EEOC and DOL guidelines. If your organization has not completed the report yet, the final deadline has been extended to Monday, October 25, 2021.
Sources:
About Limitless Growth
Limitless Growth is an Elite HR and Business Consulting Boutique that supports corporate, global firms, and start-up companies in their route to excellence and market dominance. Providing recommendations, guidance, and strategy, with a fresh approach that best ensures the future viability and growth of businesses. We have qualified consultants that can help you achieve compliance.
Contact:
Rosangela Knecht
1(888)-Grow-4-HR
www.limitlessgrowth.com