CLIENT UPDATE

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July 13, 2016

EEOC Announces Revisions to its Proposal To Require More Pay Data From Large Employers

On July 13, 2016, the United States Equal Employment Opportunity Commission (“EEOC”) announced a revised version of its proposed rule to change the Employer Information Report, also known as the EEO-1 Survey (“EEO-1”). For more information about the EEOC’s proposed rule, please see our January 29, 2016 alert at http://putneylaw.com/cu_012916.html. The proposed rule only applies to employers with 100 or more employees.

Under the revised proposed rule, the due date for companies to submit the EEO-1 survey would be pushed back from September 30 to March 31. The 2016 EEO-1 report filing deadline will remain September 30, 2016.

The EEOC’s revised proposed rule also moves the “workforce snapshot” period from the third quarter to the fourth quarter, October 1st to December 31st. The “workforce snapshot” period is the pay period when employers count the total number of employees for that year’s EEO-1 report. Again, this change will not affect the 2016 EEO-1.

The EEOC’s new proposed rule also now specifies that it will require employers to report on income provided in Box 1 of the W-2 form. Box 1 includes income that is received between January 1st and December 31st of the relevant calendar year. Previously, the EEOC’s proposed rule did not specify which box on the W-2 it would use as the measure of individual compensation.

Takeaway for Employers

The public will have 30 days, until August 15, 2016, to submit comments to EEOC concerning the revised rule. Even with the revisions, if adopted, this rule will significantly increase the amount of time and effort necessary for employers to complete the EEO-1 form.

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If you have any questions regarding the revised proposed rule, please do not hesitate to contact us.