The EEOC modernizes its data collection practices
The US Equal Employment Opportunity Commission (EEOC) recently announced its efforts to modernize the agency’s EEO data collection by revising procedures for professional employer organizations (PEOs), organizations Administrative Services Organizations (ASOs), Human Resource Outsourcing Organizations (HROs) and other similar organizations. organizations (“Third-Party Human Resource Organizations”) to file Component 1 EEO-1 on behalf of an “Employer Client” or “Company Client”. In particular, the EEOC made the following changes:
Each client company must have its own EIN (i.e. Employer Identification Number or Federal Tax Identification Number (FEIN)) if a third-party human resources organization files Component 1 EEO-1 in his name. The company registration must be for the client company and not for the third-party human resources organization. Each registrant must have an individual user account to access the EEO-1 Component 1 online filing system.
Once the client company has created its own registration dossier, it can invite the third-party human resources organization to create an associated user account and then file the EEO-1 Component 1 report on behalf of the client company.
The third-party HR organization will not be permitted to file an EEO-1 Component 1 report that includes itself and the client company and/or a report that includes multiple client employers.
The third-party HR organization is not authorized to certify a client company’s EEO-1 Component 1 report or serve as the client employer’s “certifier”.
These procedural changes may make it more onerous for third-party human resources organizations to file the EEO-1 Component 1 report on behalf of client companies. Client companies that have used third-party HR organizations in the past or intend to do so this year may want to plan accordingly and make necessary adjustments to accommodate new procedures. In addition to announcing these changes, the EEOC also provided a fact sheet and guidance in the form of frequently asked questions regarding these changes.
It is likely that the EEOC will release additional changes closer to the tentative opening date of April 12, 2022 for the EEO-1 2021 repository. In addition to the announcement above , the EEOC announced the end of Type 6 reports, which many large employers used. Of particular interest to filers will be how the EEOC plans to address the backlog of merger, acquisition and spin-off applications, which were not addressed during the EEO-1 filing process. of 2019 and 2020. Although the EEOC asked employers to indicate these changes in the EEO-1 comments filed for 2019 and 2020, this was a major departure from the previous system that required addressing manual of these changes by the EEOC. As part of its recent announcement, the EEOC also indicated that it plans to release updated resource materials and additional guidance before the 2021 repository opens.
© 2022, Ogletree, Deakins, Nash, Smoak & Stewart, PC, All rights reserved.National Law Review, Volume XII, Number 49