What Exactly Is EEO-1 Reporting? An Introduction for Employers

EEO Report Terminology

For most of its history, the EEO-1 report focused solely on workforce demographics (i.e., race/ethnicity, sex, and job category). From 2016 to 2020, however, it had a second function, which ultimately segmented the report’s data into two components. 

EEO-1 Component 1 was for the report’s traditional demographic data, while the now retired EEO-1 Component 2 report attempted to combat pay discrimination by applying the same demographic classifications to employee pay data (i.e., wages). Even though the EEOC eventually discontinued the Component 2 report, it still refers to the EEO-1 report as “EEO-1 Component 1 Data.” 

Additionally, the EEOC also uses three other annual reports to collect workforce demographic data from specific sectors:

• EEO-3 Report (a.k.a. EEOC Form 247) for locally referred unions with 100 or more members.
• EEO-4 Report (a.k.a. EEOC Form 164) for state and local governments with 100 or more employees.
• EEO-5 Report (a.k.a. EEOC Form 168A) for public elementary and secondary school systems and districts with 100 or more employees.

Why File EEO-1 Reports?

While most organizations are legally required to submit an EEO-1 report, doing so helps both themselves and the EEOC. Report data allows for more efficient investigations of discrimination claims and gives employers a self-assessment for addressing hiring disparities.

Thus, complying with EEO-1 reporting requirements helps avoid legal issues and demonstrates a company’s commitment to fair employment. This, in turn, can contribute to a more productive work environment by appealing to a broader range of qualified candidates.

Learn More: Inclusive Workplace: 5 Strategies to Foster Inclusion in the Workplace

EEO-1 Reporting Requirements

Who Has to File an EEO-1 Report?

The following types of employers are legally required to file an annual EEO-1 report:

• All private U.S. employers with 100 or more employees.
  • Private U.S. employers with fewer than 100 employees are also required to file if they’re affiliated with or owned by another organization and the combined total headcount is 100 or more employees.
• Financial institutions that have 50 or more employees and act as either depositories for government funds or issuing and paying agents for U.S. savings bonds and notes.
• Contractors with 50 or more employees and $50,000 or more in federal contracts or first-tier subcontracts.

Employee headcounts must include all full-time and part-time employees listed on a Workforce Snapshot Period payroll (i.e., any payroll between October 1 – December 31) of the reporting year. Employers can choose the payroll they use for this purpose but can’t exclude listed employees who later resigned or were terminated.

What Data Do EEO-1 Reports Include?

Every employee listed on an EEO-1 report must have one (and only one) entry for each of the following classifications. The EEOC, however, is expected to update the race/ethnicity classifications by March 28, 2029.

How to Complete an EEO-1 Report

In addition to the steps below, always review the current year’s instruction booklet on the agency EEO-1 data collection website.

1. Determine Employer Type: The EEOC has unique reporting requirements based on whether an organization is a Single-Establishment Employer or a Multi-Establishment Employer. Single-establishment employers only have to file a single report. Multi-establishment employers, however, must file one report for the central headquarters location (Headquarters Report), one report each for every other location (Establishment-Level Reports), and a combined report that merges all the information (Consolidated Report).
2. Choose the Workforce Snapshot Payroll: Employers can choose any payroll or pay period from the reporting year’s Workforce Snapshot Period (October 1 – December 31). Every employee on the selected payroll must be included in the EEO-1 report, even if the employer later terminated the worker or accepted their resignation.
3. Gather the Data: Employers should use the EEOC’s Job Classification Guide to assign each role or position in the organization to the correct corresponding job category. When gathering employee demographic data, the EEOC prefers employers use voluntary self-identification. If an employee chooses not to self-identify voluntarily, an employer may use employment records or observer identification instead.
4. Submit the Report: Similar to the printed EEO-1 form from years past, electronic submissions require information about the employer filing the report. Note: Section C is only required for multi-establishment employers, while Section J is optional regardless of employer type.
   • Section A (Type of Report): Indicate if the report is a single-establishment report or one of the multi-establishment reports (e.g., headquarters report, consolidated report, etc.)
   • Section B (Employer Identification): List the employer’s name, address, OFS Company ID, etc.
   • Section C (Headquarters or Establishment-Level Identification): List the name, address, OFS Company ID, etc., for the headquarters establishment and each non-headquarters establishment.
   • Section D (Employer Identification Number): Provide the employer’s federal EIN.
   • Section E (Employer Filing Eligibility): Identifies whether the employer is eligible (i.e., legally required) to file an EEO-1 report, as determined by a series of questions answered during OFS registration.
   • Section F (Federal Contractor Designation): Identifies if the employer is a federal Contractor, as determined by OFS registration.
   • Section G (NAICS Information): Provide the employer’s North American Industry Classification System (NAICS) code ID.
   • Section H (Workforce Data): Enter all employee information collected for the report.
   • Section I (Workforce Snapshot Period): Enter the payroll or pay period date(s) chosen for the report.
   • Section J (Comments): Enter any additional information about any headquarters or non-headquarters establishment.
   • Section K (Submission Certification): Enter the submission’s certification information (e.g., the employer’s certification statement, the certification date, etc.)
5. Stay Informed: Employers should continue to monitor EEOC alerts and announcements for future data submission dates and any changes to the report’s requirements.

EEO-1 Report FAQs

What are the penalties for non-compliance?

The EEOC can apply for federal court orders compelling employers to comply with reporting requirements and file lawsuits against employers who repeatedly fail to submit a report.

How should employers report demographic data for non-binary employees?

Employers may voluntarily include non-binary employee data in the report’s Comments section (Section J). In such cases, don’t repeat non-binary employee data in other report areas, such as Section H.

Can the public access EEO-1 report data?

The EEOC shares the aggregate data from a submission window with the public on its Data Tools and Products dashboards. However, each employer’s individual report is kept confidential.

Avoid Compliance Headaches with Paylocity

Preparing and submitting an EEO-1 report can be time-consuming and complicated, even for the most seasoned HR professionals. Report requirements have changed frequently over the last decade, and the submission dates move yearly.

This is where having the best payroll administration and compliance software can make all the difference in the world. Take the stress out of every pay period with features such as:

• Default configurations and overrides that automate manual tasks and ensure completeness of payroll data.
• Automatic payroll audits that spot and call out any unexpected data entry.
• Tax geolocation settings that help ensure every employee is set up to pay the correct taxes based on their location.

Request a demo today and see how much easier payroll compliance and administration can be.