Human Resources News & Insights

EEOC updates pay reporting proposed rule: What’s new?

This past winter, the EEOC issued a proposed rule what would change the EEO-1 reporting requirements of employers. Now, after having listened to public comments on that proposal, the agency has issued an update. Here’s what you need to know. 

The proposed rule, as it now stands after having been updated, will still require employers with at least 100 employees to submit to the EEOC employees’ W-2 earnings data and actual hours worked.

This reporting is to be completed using a new “component” for the old EEO-1 report many employers are already used to.

The EEO-1 report in use today requires employers to report the gender, race and ethnicity of its employees. The new component will add pay data to the equation. Employers will be required to report aggregate W-2 wages and hours worked in 12 pay bands for each of the 10 EEO-1 job categories and 14 gender, race and ethnicity categories on the current form.

What you need to know

What changes did the EEOC make from its winter proposal?

  • You’ve got more time to gear up. The new proposal sets the due date for the first revised EEO-1 report at March 31, 2018. The deadline under the initial proposal was Sept. 30, 2017. The current reporting requirements have not changed, however. Those required to submit an EEO-1 report must still submit their 2016 reports by Sept. 30, 2016.
  • No EEO-1 reports will be filed in 2017. This gives employers some time to get their ducks in a row for the new reports.
  • The filing deadline will be changed moving forward. The March 31 deadline will be the new, annual drop-dead date by which EEO-1 reports will have to be filed — instead of Sept. 30.
  • The “snapshot” period will change. The new proposed rule will change the “workforce snapshot” to a pay period between Oct. 1 and Dec. 31. The current snapshot period is July 1 through Sept. 30. The EEO-1 report due March 31, 2018 will be the first to use the Oct. 1 through Dec. 31 snapshot period.
  • Report income provided in Box 1 of W-2. The winter proposal didn’t specify which box on workers’ W-2 forms to use when reporting wages. The new proposal says to use the info from Box 1.

Pay bands

The pay bands the EEOC plans to include in the report for which it’ll collect aggregate pay data are as follows:

  1. $19,239 and under
  2. $19,240 – $24,439
  3. $24,440 – $30,679
  4. $30,680 – $38,999
  5. $39,000 – $49,919
  6. $49,920 – $62,919
  7. $62,920 – $80,079
  8. $80,080 – $101,919
  9. $101,920 – $128,959
  10. $128,960 – $163,799
  11. $163,800 – $207,999
  12. $208,000 and over
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