In May, the U.S. Equal Employment Opportunity Commission (EEOC) submitted a proposed rule to the Office of Management and Budget to eliminate EEO-1 reporting by employers. With the potential for states to inconsistently implement their own reporting requirements in the absence of EEO-1 data from the EEOC, PayrollOrg questioned the proposed rule’s burden on employers.
The EEO-1 is a mandated annual data collection requiring all private-sector employers with 100 or more employees and certain federal contractors to submit worker demographic information by job category, sex, race, and ethnicity to the EEOC.
The EEO-1 reporting framework has been part of the employer compliance landscape for decades. Employers, payroll departments, and human capital management providers have established standardized processes, system configurations, internal controls, and data governance practices to support compliance. Significant changes to these long-standing requirements should be accompanied by clear guidance, sufficient implementation time, and a well-defined transition plan.
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Alice P. Jacobsohn, Esq., is Director of Government Relations at PayrollOrg.