The U.S. Equal Employment Opportunity Commission (EEOC) is suing 15 different employers across ten different states – including one in New York (EEOC v. Commodore Construction Corp.) – for failing to file demographic reports from their workplaces, specifically the mandatory EEO-1 Component 1 data report. The EEOC claims that the employers failed to file their EEO-1 reports, including in 2021 and 2022, so it’s seeking a court order requiring the employers to file their reports.
In light of these lawsuits, it’s important to look at exactly what these reports are, when they need to be filed, and how to file them with the EEOC.
We want to arm you with the information you need to remain compliant with federal law, if you’re mandated to do so.
The EEO-1 Report
Under Title VII of the Civil Rights Act of 1964, the EEOC has the power to require reports and information from certain employers. The idea behind this power is that it allows the EEOC to better carry out its mission of addressing and preventing discrimination in the workplace. To be sure, the goal is to ensure compliance with the law, and that’s why employers are the EEOC’s targets. In this instance, one of the required reports is the Employer Information Report, or EEO-1.
The EEO-1 reports workforce demographic information, including job categories and information on the sex, race, or ethnicity of employees, to the EEOC every year. In addition, the EEO-1 is split into two different categories: Component 1 and Component 2.
An EEO-1 Component 1 report contains the demographic information, while a Component 2 report contains information about employee W-2 earnings and the hours worked by each employee.
This information is collected for a variety of reasons, including to better enforce the Civil Rights Act and to analyze and research discrimination in the workplace. Arguably, according to the EEOC, completing EEO-1 reports helps employers to self-assess their own compliance with the EEOC and Title VII.
Who Has to File the EEO-1 Report
The mandate to report covers all private employers that have 100 or more employees during the fourth quarter (October-December) of the reporting year. The “100 or more employees” requirement is also satisfied where the employer is owned by or affiliated with another employer or where a group of employers is controlled to the point where the group is a single enterprise with 100 or more employees.
However, the U.S. Department of Labor Office of Federal Contract Compliance Programs (OFCCP) also requires federal contractors to file an EEO-1 report if they have 50 or more employees and are not exempt for any other reason (e.g., transactions under $10,000; work outside of the U.S.; etc.).
When to File the EEO-1 Report
In the past few years, the deadline for EEO-1 Component 1 reporting has fluctuated, causing some confusion. For example, the 2021 EEO-1 Component 1 report was due on May 17, 2022, while the 2022 EEO-1 Component 1 report was due on December 5, 2023.
Data collection for the 2023 EEO-1 Component 1 report opened on April 30, 2024 and will close on June 4, 2024. After this date, employers who fail to file their report will receive a Failure to File notice from the EEOC instructing them to file as soon as possible and no later than 11:00 PM on July 9, 2024.
If an employer fails to file the report by the July deadline, then the EEO-1 will no longer be accepted, and the employer will be considered out-of-compliance. The EEOC is empowered to then bring suit in a U.S. District Court in order to compel the employer to file the report. If the employer still doesn’t file the report after receiving a court order, it can be held in contempt.
How to File the EEO-1 Report
No one wants to be out of compliance or be held in contempt. So what must a 100-employee employer do?
First, the EEO-1 Report can be filed online through the EEO-1 Component 1 Online Filing System (OFS). The person designated to file the report can create an account using their email address nd then can either register a new employer or type in the employer’s existing PIN which is sent to employers before data collection opens. Once the account is created, the data can be input manually or by uploading a data file.
Second, once the information has been inputted into the system, the employer must certify that all the data uploaded is accurate to the best of its knowledge. Failure to make this certification or putting false information into the report is costly, because making a false statement on an EEO-1 report is a crime punishable by a large fine or five years imprisonment.
Consequently, it’s important to be sure that you file the report correctly and on time to avoid future problems. Otherwise, the EEOC may come knocking on your door with a lawsuit.
If you have questions about this or other employment law issues, feel free to reach out at 716.839.9700 or info@coppolalegal.com. We’re here to help.
