EEO-1 Form: The first revisions in over 40 years
November, 2006
The Equal Employment Opportunity Commission recently enacted the first major revision of the EEO-1 Report since its creation in 1966. All private employers with more than 100 employees (or federal contractors with more than 50 employees) are required to complete the EEO-1 annually, which entails reporting demographic data for broad occupational categories. The revisions will be reflected in the 2007 survey, due September 30. Employers should familiarize themselves with the revisions now since employers will need to revise their current self-identification forms and to reclassify a number of employees' job categories in order to provide accurate data in September 2007.
Ethnic and Racial Classifications
The EEOC made multiple changes to the ethnic and racial classifications section, some more significant than others. Because of these changes the EEOC encourages (but does not require) employers to resurvey their employees so that they may self-identify under the new classifications. The EEOC anticipates a transition period over the next few years during which time employers will eventually reclassify all employees pursuant to the new classifications. That said, employers should use the new categories to capture data on new employees. The EEOC strongly recommends self-identification and only allows employers to classify employees based on visual perception where an employee refuses to self-identify.
To begin with, the report includes a new classification, "Two or More Races." Employees may self-identify under this classification and employers should use it to report employees who self-identify as multiple races. Employers should retain any detailed racial data given, though, because such data constitutes an employment record.
The next significant change reflects an effort by the EEOC to more accurately capture data on Hispanic or Latino employees. The "Hispanic" classification has been renamed "Hispanic or Latino." Additionally, the EEOC recommends using a two-question format to capture ethnicity and racial data. Employees should be asked 1) Do you identify as "Hispanic or Latino"? Yes or No; and 2) With which race(s) do you identify? The choices for race include White, Black or African American, Native Hawaiian or Other Pacific Islander, Asian, American Indian or Alaska Native, and Two or More Races. If an employee answers yes to the first question then he should be counted only under the "Hispanic of Latino" classification, even if he selects a racial classification under the second question.
Finally, the "Asian or Pacific Islander" racial classification is now two separate classifications β "Asian" and "Native Hawaiian or Other Pacific Islander." Employees currently identified under the former classification who have not been resurveyed and are of unknown decent should be classified as "Asian."
Job Categories
The most significant change to the job categories is that the "Officials and Managers" job category has been divided into two subcategories β 1) Executive/Senior Level Officials and Managers and 2) First/Mid-Level Officials and Managers.
Executive/Senior Level: These are employees who plan, direct, and formulate policy; set strategy; and provide overall direction of the organization. Typically this will include the highest-level officers such as the CEO, COO, CFO, and General Counsel. In large organizations it may also include individuals within two reporting levels of the CEO whose responsibilities involve frequent interaction with the CEO.
First/Mid-Level: These are employees who direct day-to-day implementation of policies and strategy set by the Executive/Senior Level group. They may report to either executive or middle management, depending on the size of the organization. Typically, this level will include vice presidents, directors, regional or divisional managers, operations managers, and first-line or team managers. This also probably includes first-line supervisors who are considered part of the management structure.
Overall, the goal is to better distinguish between managerial levels and between those who manage people and those who do not. To this end, non-managerial officials with business or finance expertise must be included in the "Professional" job category not the "Officials and Managers" category. The latter is reserved solely for employees managing people, not projects. Such non-managerial officials might include market analysts, insurance underwriters, and tax preparation specialists. Additionally, supervisors and lead operators who are paid hourly and are not considered members of management should now be assigned to the "Operatives" category along with the employees they supervise rather than the "Craft Worker" category to which they were previously assigned.
What this means for employers
Employers should act early to update their current methods for capturing and storing data in order to ensure they have accurate data in time for the September 30, 2007 filing deadline. Completing the survey is always a challenging task, but employers should anticipate additional hurdles in light of the revisions. For example, employers who choose to resurvey their employees using the new ethnic and racial classifications should do so across the organization and across all races to avoid singling out any particular group on the basis of race or ethnicity. With respect to the new Officials and Managers categories, a small or mid-size organization with a compressed management structure and little distinction between high and mid-level managers may need to spend more time reclassifying positions than a large organization with a well-stratified management hierarchy.
The bottom line is that employers must submit their 2007 EEO-1 Report by September 30, 2007. Failure to file the report, or filing an inaccurate report, can result in penalties, fines, and disbarment from public contracts, and will almost certainly raise a red flag during investigations of a potential discrimination claim.
Contact your Bullivant employment counsel with any concerns about preparing for the new EEO-1 Report. You can also find more information about the revisions on the EEOC website at http://www.eeoc.gov/eeo1/index.html.