Publication

February 5, 2019Client Alert

EEO-1 Deadline Extension Creates Opportunity for Companies

On Friday, February 1, 2019 the Equal Employment Opportunity Commission announced that as a result of EEOC’s closure during the recent government shutdown, the opening of the database for filing the 2018 EEO-1 Survey has been postponed to early March and the filing deadline extended until May 31, 2019. Companies that filed last year should receive information about login passwords in late February or early March.

The extension of the filing deadline provides HR professionals with an opportunity to review all aspects of their EEO-1 compliance to ensure that when they file the survey the information is as accurate as possible. We suggest taking the following steps:

  • Confirming the corporate contact: If the Joint Reporting Committee follows past practices all correspondence regarding the EEO-1 Survey will be sent via email to the person who was identified as the corporate contact last year. If that person is no longer with the company or will not be the responsible party this year, companies should send an email to E1.Techassistance@eeoc.gov identifying the new contact.
     
  • Confirming that the company is required to file a survey: All private employers with 100 or more employees must file an EEO-1 survey. There are two ways that smaller companies may need to complete the survey as well. First, all members of a corporate family may need to file if the employee total among all companies in the corporate family is at least 100 and the companies are sufficiently closely managed. Second, companies that are federal government contractors or first-tier subcontractors need to file the survey if they have 50 employees and at least one federal contract, subcontract, or purchase order of at $50,000 or more. While individual contracts are not aggregated to reach the $50,000 threshold, purchase orders under the same master purchase agreement are aggregated when considering whether the agreement reaches the $50,000 threshold. Additionally, a covered federal contract/subcontract held by one member of a corporate family may require that all members of the family, regardless of size, file EEO-1 surveys if the companies are sufficiently closely allied. Small government contractors who filed in the past should use this time to determine whether they held a prime or first-tier contract during calendar year 2018. Because only first-tier subcontracts are covered for this filing, it isn’t unusual for contractors with fewer than 100 employees to move in and out of filing status as their mix of contracts changes.
     
  • Registering all mergers, acquisitions, and spin-offs: Companies that were involved with mergers, acquisitions, or corporate spin-offs during calendar year 2018 should use this time to correct their records with the EEO-1 Joint Reporting Committee. Those with mergers or acquisitions should send an email to E1.Acquisitionsmergers@eeoc.gov. Information related to spin-offs should be sent to E1.SPINOFFS@EEOC.GOV.
     
  • Updating the EEO-1 categories assigned to jobs: Corporate reorganizations, internal FLSA audits, job duty expansion or contraction, and other corporate changes may result in certain jobs falling into EEO-1 categories other than those identified in the HRIS system. While all companies should consider whether it is time to review and confirm the EEO-1 category assignments, government contractors should take special care to ensure that jobs are properly categorized. Generally speaking, affirmative action job groups should not contain jobs which are in different EEO-1 categories. Accordingly, changes in EEO-1 categories may require revisions of AAP job groups. Even more important than the impact on the Affirmative Action Program utilization analysis, improper EEO-1 assignments can result in initial findings of compensation discrimination during an Office of Federal Contract Compliance Programs compliance review. The new OFCCP compensation directive (Dir 2018-05) makes clear that if the agency does not receive sufficient information about a contractor’s compensation system at the start of a desk audit they will use job groups and/or EEO-1 categories as their pay analysis groups for the initial review of the compensation data. Because companies that have not done internal compensation studies often do not know what groupings of jobs and/or factors potentially influencing compensation best represent their pay practices in a statistical study, they often do not provide the OFCCP with much information about compensation practices during the desk audit phase of a compliance review. In those cases, since the OFCCP will be using the EEO-1 categories, it is essential that as much as possible the EEO-1 assignments accurately reflect current job content.

If you have any questions about the EEO-1 Survey or conducting compensation reviews under attorney client privilege, please contact Farrah Rifelj, Maryelena Zaccardelli, and Teresa Como.

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