EEO-1 Reports: How to Ensure a Complete, Correct Filing in Time for the Sept. 30 Deadline Thursday, August 4, 2011 Presented by the Employer Resource Institute © 2011 Employer Resource Institute. All rights reserved. These materials may not be reproduced in part or in whole by any process without written permission. Disclaimers • This webinar is designed to provide accurate and authoritative information about the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. • This webinar provides general information only and does not constitute legal advice. No attorney-client relationship has been created. If legal advice or other expert assistance is required, the services of a competent professional should be sought. We recommend that you consult with qualified local counsel familiar with your specific situation before taking any action. © 2010 Employer Resource Institute. All Rights Reserved About Today’s Presentation • This entire webinar is being recorded and all of the accompanying materials are protected by copyright. • If at any time during today’s event you experience technical issues, please call (877) 297-2901 to reach an operator. • Questions or comments about this webinar? Employer Resource Institute (800) 695-7178 custserv@employeradvice.com © 2010 Employer Resource Institute. All Rights Reserved Recertification Credit This program has been approved for 1.5 recertification credit hours toward PHR® and SPHR® recertification through the Human Resource Certification Institute (HRCI). Please be sure to note the program ID number on your recertification application form. The moderator will issue the number during the live webinar session. For more information about certification or recertification, please visit the HRCI home page at www.hrci.org. The use of the above seal is not an endorsement by HRCI of the quality of the program. It means that this program has met HRCI’s criteria to be pre-approved for recertification. © 2010 Employer Resource Institute. All Rights Reserved About Our Speaker Kristine E. Kwong, Esq., is a partner in the Los Angeles office of the law firm Musick, Peeler & Garrett, LLP. She advises and counsels clients on a wide range of business and employment issues, and her practice includes the drafting and updating of handbooks, policy manuals, codes of conduct, and severance packages. She regularly produces and presents training programs for employers on current issues of employment law, and she's a longtime popular speaker for BLR. Kristine earned her law degree from the University of the Pacific (McGeorge School of Law). k.kwong@mpglaw.com www.mpglaw.com © 2010 Employer Resource Institute. All Rights Reserved EEO-1 Reports: How to Ensure a Complete, Correct Filing in Time for the Sept. 30 Deadline Kristine E. Kwong, Esq. Musick, Peeler & Garrett, LLP k.kwong@mpglaw.com Agenda The Basics of Filing Your EEO-1 Report The Major EEO-1 Changes Made Recently Employee Resurveys Additional EEO-1 Issues (Sources: EEOC; Business & Legal Resources; Gordon & Rees) Copyright 2011 BLR Inc. EEO-1 Basics What is the EEO-1 Report? The EEO-1 Report (technically, it’s called the “Employer Information Report” or, sometimes, “Standard Form 100”) is a U.S. federal government form requiring many employers to submit a current count of their employees – first by job category, and then by ethnicity, race, and gender. The EEO-1 report goes to both the U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Labor, Office of Federal Contract Compliance Programs (OFCCP). Copyright 2011 BLR Inc. EEO-1 Basics What’s the legal basis for the EEO-1 Report? The Employer Information EEO-1 survey is conducted annually under the authority of Public Law 88-352, Title VII of the Civil Rights Act of 1964, as amended by the Equal Employment Opportunity Act of 1972. The filing of this report is required by law; it is not voluntary. Under section 709(c) of Title VII, the Equal Employment Opportunity Commission may compel an employer to file this form by obtaining an order from the United States District Court. Copyright 2011 BLR Inc. EEO-1 Basics Which employers are required to file an EEO-1 Report? • All employers with 100 or more employees (or employers with fewer than 100 employees if owned by or corporately affiliated with another company and the entire enterprise employs at least 100 employees); OR • All federal government contractors and first-tier subcontractors with 50 or more employees AND a contract amounting to $50,000 or more Copyright 2011 BLR Inc. EEO-1 Basics What does the government do with the EEO-1 Report data? Both the EEOC and OFCCP have used the EEO-1 since 1966. The EEOC uses the data to support civil rights enforcement. The EEOC also uses the data to analyze employment patterns, such as the representation of female and minority workers within companies, industries, or regions. OFCCP uses EEO-1 data to determine which employer facilities to select for compliance evaluations. OFCCP’s system uses statistical assessment of EEO-1 data to select facilities where the likelihood of systematic discrimination is the greatest. Copyright 2011 BLR Inc. EEO-1 Basics How should we file the EEO-1 Report? The EEOC’s preferred method for completing your EEO-1 Report is using its online filing system. The system is completely web-based, so there’s no software to download or install. Your data will be transferred via encrypted links to the EEOC, ensuring its privacy. Data from your previous year’s EEO-1 Report will automatically fill the blanks for the current year’s form, saving data entry time. And, you can access up to 10 years’ worth of EEO-1 data for your workforce. You may also submit EEO-1 reports as computer printouts. (See http://www.eeoc.gov/eeo1survey for the EEOC-approved specifications for creating an EEO-1 data file and submitting your report as a printout.) Paper EEO-1 forms will be generated on request only, and only in extreme cases where Internet access is not available to the employer. Copyright 2011 BLR Inc. EEO-1 Basics How should we file the EEO-1 Report? General instructions on how to file are available on the EEOC’s website at http://www.eeoc.gov/employers/eeo1survey/howtofile.cfm If you are a first-time EEO-1 filer, you may register at: https://egov.eeoc.gov/eeo1/register.jsp The EEOC also has a helpful instruction booklet for first-time filers that includes more detailed explanations about the types of data you need to collect: http://www.eeoc.gov/employers/eeo1survey/upload/instructions_form.pdf Copyright 2011 BLR Inc. EEO-1 Basics How should we file the EEO-1 Report? All multi-establishment employers, i.e. employers doing business at more than one establishment, must file the following: a report covering the principal or headquarters office; a separate report for each establishment employing 50 or more persons; a consolidated report that MUST include ALL employees by race, sex and job category in establishments with 50 or more employees as well as establishments with fewer than 50 employees; AND a list, showing the name, address, total employment and major activity for each establishment employing fewer than 50 persons, must accompany the consolidated report. Copyright 2011 BLR Inc. EEO-1 Basics How should we file the EEO-1 Report? The total number of employees indicated on the headquarters report, PLUS the establishment reports, PLUS the list of establishments with fewer than 50 employees, MUST equal the total number of employees shown on the consolidated report. All forms for a multi-establishment company must be collected by the headquarters office for its establishments or by the parent corporation for its subsidiary holdings and submitted in one package. For the purposes of this report, the term Parent Corporation refers to any corporation which owns all or the majority stock of another corporation so that the latter stands in the relation to it of a subsidiary. Copyright 2011 BLR Inc. EEO-1 Basics How should we file the EEO-1 Report? Only those establishments located in the District of Columbia and the 50 states are required to submit a report. No reports should be filed for establishments in Puerto Rico, the Virgin Islands or other American Protectorates. Copyright 2011 BLR Inc. EEO-1 Basics What’s the deadline for this year’s EEO-1 Report? You must file this year’s EEO-1 report no later than September 30, 2011. Sept. 30 is, in fact, the deadline each year for the EEO-1 report. The report must based on your employment numbers from one pay period in July, August, or September of the current survey year. (And, the EEO-1 report requires employee data only – not applicants.) Copyright 2011 BLR Inc. Major EEO-1 Changes Race and Ethnic Categories Adding a new category titled "Two or more races, not Hispanic or Latino“ Deleting the "Asian and Pacific Islanders" category Adding a new category titled "Asians, not Hispanic or Latino" Adding a new category titled "Native Hawaiian or Other Pacific Islander, not Hispanic or Latino“ Extending the EEO-1 data collection by race and ethnicity to the state of Hawaii Copyright 2011 BLR Inc. Major EEO-1 Changes Job/Position Levels The “Officials and Managers” category was divided into two new groupings: Executive/Senior Level Officials and Managers. These positions plan, direct, and formulate policy, set strategy, and provide overall direction. In larger organizations, they are within two reporting levels of the CEO. First/Mid-Level Officials and Managers. These positions direct implementation or operations within specific parameters set by Executive/Senior Level Officials and Managers. They oversee day-to-day operations. The revised EEO-1 also moves business and financial occupations from the "Officials and Managers" category to the "Professionals" category to improve data for analyzing trends in mobility of minorities and women within these ranks. Copyright 2011 BLR Inc. Employee Resurveys As you prepare to submit your EEO-1 data, this year, you may need to resurvey your employees so that they're given the chance to self-identify their race and ethnic categories. Employers who fall under EEO-1 reporting requirements must keep gender, race, and ethnicity data on file for every full-time and part-time employee. You may not have active employees described in your HR or payroll records as "unknown" for these fields. As part of the handout for this webinar, you’ll find a one-page sample survey form that you can use with your employees for the EEO-1 resurvey. You should distribute and collect these completed forms as soon as possible to meet the Sept. 30 deadline. Copyright 2011 BLR Inc. Employee Resurveys On this form, note the first and second paragraphs. They will help you to communicate with employees that you are required by the federal government to conduct the survey, but that they won’t be treated unfairly if they choose not to respond. Also, note that the survey asks separate questions about ethnic and race categories. Whatever resurvey method you choose, you should always ask if an employee self-identifies as Hispanic or Latino (ethnicity), and then ask what race(s) the employee considers himself/herself to be. (The EEOC calls this the "Two Question Format.") You may circulate this survey form using electronic means, as long as you have the capability of storing the results confidentially and allowing your workers to answer these questions as shown. It's a good practice to ask new hires to self-identify their race and ethnic categories as soon as possible once they're onboard, particularly if you're storing employee data in your HRIS records for EEO-1 reporting. Copyright 2011 BLR Inc. Additional EEO-1 Issues The Critical Importance of Employee Self-Identification EEOC strongly prefers that your workers pick their own categories, rather than having you as the employer or HR director assign categories based on your own visual identifications of individual workers. Note: You must accept, without argument, an employee’s self-identification – even if you think the worker is lying, mistaken, or wrong. Copyright 2011 BLR Inc. Additional EEO-1 Issues Employers Who Refuse to Self-Identify If an employee declines to self-identify, don't push – but, you should require that employee to turn in the survey with the "Declines self-identification" line checked. Then, you should keep these surveys in your files. Because you're required to solicit voluntary self-identifications in these surveys, these steps may protect you in the future. In terms of filing your EEO-1 Report, you may obtain the necessary information for these workers from their existing employment records or your own visual observation. However, remember that employment records and visual identification may be used ONLY if an employee refuses to self-identify. Copyright 2011 BLR Inc. Additional EEO-1 Issues Resurveying Some (But Not All) of Your Workers In preparing the EEO-1 Report, some employers choose to resurvey only employees who fall into certain race or ethnic categories (to confirm the way they identify themselves), for example, to avoid the effort involved in resurveying the entire workforce. However, this approach raises the risk of creating a perception among employees that you're singling out a single racial or ethnic group – or, that you're not being fair to other workers who may decide to self-identify with the new "Two or More Races" category (created during the 2007 EEO-1 revisions) but weren't given the chance to do so in earlier years. Consult your employment counsel if you have questions about avoiding legal risks when resurveying your workers for EEO-1 compliance. Copyright 2011 BLR Inc. Additional EEO-1 Issues Unusual and Creative Resurvey Answers From Employees As with most HR forms, your employees may find very unique and unusual ways to fill out their resurveys! Here's a short list of the most common questions that have arisen regarding the way workers complete their EEO-1 resurveys: If employees select several specific races, even though you asked them only if they consider themselves to be "Two or More Races," you should count these employees in the "Two or More Races" category – but, save the resurvey forms showing the detailed race information these workers picked, because the forms qualify as employment records that must be preserved. You may decide to ask employees to specify particular races, instead of simply checking the "Two or More Races" category, but you're not required to do so. (If you do, remember to preserve the forms.) However, for purposes of filing the EEO-1 report, you must still report these workers in the "Two or More Races" category. Copyright 2011 BLR Inc. Additional EEO-1 Issues Unusual and Creative Resurvey Answers From Employees If employees who self-identify as Hispanic or Latino also answer the question about race, you do not report the race data for these workers on the EEO-1 report (but, again, you must preserve these resurvey forms as employment records). Copyright 2011 BLR Inc. Additional EEO-1 Issues Confidentiality Regardless of the survey format you choose, you should make sure that the form given to your employees contains a disclaimer similar to the first and second paragraphs shown in the sample form included with this webinar. Also, the completed forms should be treated in the same way you handle medical records. They should be locked up separately from the day-to-day personnel files and available only on a strictly need-to-see basis. Copyright 2011 BLR Inc. Additional EEO-1 Issues Federal Contractors If you're a federal contractor, you're required generally to collect and maintain records on the race, ethnicity, and gender of your workers by the Office of Federal Contract Compliance Programs (OFCCP). In the past, the OFCCP adopted the same race and ethnicity categories used by the EEOC: Blacks, Hispanics, Asians/Pacific Islanders, and American Indians/Alaskan Natives. The OFCCP has not yet updated its regulations to adopt the new categories for the EEO-1 report. In the meantime, though, it's issued interim guidelines permitting employers to use the new EEO-1 categories in their reports to OFCCP. (See http://www.dol.gov/ofccp/regs/compliance/EEO1_Interim_Guidance.htm.) Copyright 2011 BLR Inc. Additional EEO-1 Issues Using the Same EEO-1 User ID and Password Each Year Make sure that you always use the same User ID and Password issued to your organization by the EEOC every year that you file the EEO-1 Report. Since the 2007 EEO-1 revisions, EEOC officials have begun sending "show cause letters" to a greater number of employers who filed their EEO-1 reports but used an outdated or mistaken User ID (making it seem as if they did not file their reports as required). These letters will be a headache for you to resolve, so it pays to avoid the problem by double checking the User ID you're using each year. Copyright 2011 BLR Inc. Additional EEO-1 Issues Penalties for Failing to File the EEO-1 Report What happens if your organization qualifies as being required to submit an EEO-1 report each year, but you fail to do so? There are no fines or penalties associated with not filing the required EEO-1 report (or filing the report late). The only remedy available to the EEOC is forcing you to file the report (including a court order requiring the filing). However, you should avoid the hassles and expense of dealing with "show cause letters" or a court order in this situation (and the perception that you have something to hide in terms of possible workforce discrimination). If you're a federal contractor, failing to file your EEO-1 report can trigger several problems, including complete debarment from accepting future government contracts. Copyright 2011 BLR Inc. Questions? Kristine E. Kwong, Esq. Musick, Peeler & Garrett, LLP One Wilshire Boulevard, Suite 2000 Los Angeles, CA 90017 213.629.7977 (phone) 213.624.1376 (fax) k.kwong@mpglaw.com www.mpglaw.com Copyright 2011 BLR Inc. Thank You • Recordings of this webinar and past presentations can be ordered by calling (800) 695-7178 • Or visit www.employeradvice.com for information. • We hope you’ll join us again soon. Please be sure to complete your program evaluation. You’ll find a link to the evaluation inside your follow-up emails from ERI. © 2009 Employer Resource Institute. 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