It’s an exciting moment when your small business starts to grow—whether that’s reaching more customers, gaining new team members, or creating new products or services. It’s all part of the adventure.
Less exciting? All the new regulations and requirements you need to follow as you expand. One of these mandatory requirements is to submit an annual EEO-1 Report to the U.S. Equal Employment Opportunity Commission (EEOC).
But what, exactly, is an EEO-1 Report—and when are you mandated to file one? Let’s dive in now!
What is EEO-1 Reporting—And Why Is It So Important?
The EEO-1 Report is a report that businesses with 100 or more employees or federal contractors with 50 or more employees have to submit to the government that highlights their workforce’s demographics, like race, ethnicity, gender and job categories.
Why is this information important? The EEOC uses EEO-1 data to spot discrimination against women and minorities.
This helps enforce civil rights laws, like Title VII of the Civil Rights Act of 1964, which prohibits discrimination against employees and job applicants based on race, color, religion, sex, and national origin.
An EEO-1 report also serves as a snapshot of each group that makes up a company, industry, or region.
But that’s not all. An EEO-1 can give you insight into how well you’re meeting your diversity, equity, and inclusion (DEI) goals, helping you build a diverse workforce and inclusive workplace culture.
Penalties for Not Filing
While there are no financial penalties for non-compliance, you may still see some serious consequences if you fail to follow the requirements.
If you run a business that’s required to submit an EEO-1 Report and you fail to do so, you’re subject to penalties that include:
- A court order compelling you to submit the report
- Potential to be held in contempt (or, in other words, potential to be charged with knowingly and willingly disobeying the court) for failing to submit a report after receiving a court order. This could lead to a trial or hearing—and if you’re found guilty, the judge can technically fine you or sentence you to jail or community service. So, it’s best to just submit your report and avoid all that.
Federal contractors and subcontractors who fail to submit an EEO-1 Report are also subject to:
- Termination of any federal government contracts
- Potential prohibition from being granted future federal contracts
And if you willfully falsify data in your report (for example, by lying about the number of women you employ in senior roles)? You’re looking at a potential fine, imprisonment of up to five years, or both.
Businesses Required to File an EEO-1 Report
You need to file an EEO-1 Report if you are a:
- Private employer with 100 or more employees
- Private employer with fewer than 100 employees, but are associated with companies or a parent company where the entire enterprise employs 100 or more employees
- Federal government prime contractor or first-tier subcontractor with 50 or more employees and a contract/subcontract amounting to $50,000 or more
- Company with 50 or more employees serving as a depository of government funds or a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes
If your small business doesn’t fit into one of the above categories, good news—you don’t need to file an EEO-1 Report.
But that doesn’t mean you’re off the hook. Some state and local governments, like Illinois, New York, Washington, and California, require companies to submit similar reports, so make sure to check your local laws for any relevant reporting requirements.
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Reporting Requirements
So which employees do you include on your EEO-1 Report? Everyone on payroll—including both full-time and part-time employees, as well as those who work remotely or off-site—during a “workforce snapshot period,” which can be any pay period between October and December.
These employees need to be categorized by:
1. Job Classification:
- Executive/senior-level officials and managers
- First/mid-level officials and managers
- Professionals
- Technicians
- Sales workers
- Administrative support workers
- Craft workers
- Operatives
- Laborers and helpers
- Service workers
2. Race or Ethnicity:
- Hispanic or Latino
- White (Not Hispanic or Latino)
- Black or African American (Not Hispanic or Latino)
- Native Hawaiian or Other Pacific Islander (Not Hispanic or Latino)
- Asian (Not Hispanic or Latino)
- American Indian or Alaska Native (Not Hispanic or Latino)
- Two or More Races (Not Hispanic or Latino)
3. Sex*:
- Male
- Female
*The EEOC doesn’t currently designate a selection box for transgender or nonbinary individuals, though you can manually record these employees in the form’s comments section.
Single-Site Employer vs. Multi-Site Employer EEO-1 Reporting Requirements
The EEOC requires you to submit different documentation depending on the number of locations you do business in.
Here’s how it all works:
Single-Site Employers
Employers who operate from a single establishment are only required to submit one EEO-1 Component 1 report.
Multi-Site Employers
Employers who operate multiple establishments or sites need to file different reports for each location. Here's how it all breaks down:
Everyone
All multi-site employers need to submit these reports:
- Type 2 Consolidated Report (EEO-1 Type 2 Report): Contains the demographic information for all employees, regardless of establishment.
- Type 3 Headquarters Report (EEO-1 Type 3 Report): Contains the demographic information for all employees working at the company’s headquarters or main office, including remote workers who report to the main office.
You also have to file the following reports depending on how many people work at your various sites.
Locations with 50 or more employees:
- Type 4 Establishment Report (EEO-1 Type 4 Report): Contains the demographic information for all employees working at an establishment with 50 or more employees. A separate report must be submitted for each location with 50 or more employees.
Locations with 50 or fewer employees:
- Type 8 Establishment Report (EEO-1 Type 8 Report): Contains the demographic information for all employees working at an establishment with fewer than 50 employees. A separate report must be submitted for each location with fewer than 50 employees.
For Employees Working at Client Sites
You have some wiggle room here: the EEOC allows these workers to be included on the documentation for the establishment they report to or on a separate establishment report for the client-owned site.
How To File EEO-1 Reports
Collecting EEO-1 data can be a time-consuming, complex process—but the actual process for filing a report is fairly straightforward:
1. Begin by determining your eligibility: Determine if your company meets the EEOC requirements for filing an EEO-1 Report and if your company is considered a single- or multi-site employer.
2. Register on the EEOC website: First-time filers need to register on the EEOC website.
3. Familiarize yourself with the data that needs to be collected: Data to collect for your company and each establishment includes the:
- Company name, ID, and unique PIN (provided at the time of registration)
- Company employer identification number (EIN) and North American Industry Classification System (NAICS) code
- Company Data Universal Numbering System (DUNS) number (if a federal contractor)
- Physical address, EIN, and NAICS code for each establishment
- Establishment DUNS number (if a federal contractor)
- Number of all full-time and part-time employees during the specified workforce snapshot pay period you select
- Sex, race/ethnicity, and job categories of all employees
4. Identify your data sources: Determine the internal systems and collection methods you need to use to find and report the necessary EEO-1 data.
5. Assign responsibility: Determine who is responsible for gathering data and filing the report (for example, human resources, compliance, or management).
6. Gather data: Collect and compile the necessary data and check it for accuracy and completion.
7. Submit the report: File your company report by the deadline through the online filing system.
8. Retain records: Keep a copy of your reporting for at least one year for audit purposes.
EEO-1 Reporting Deadlines (In 2023)
The deadline for submitting an EEO-1 Component 1 Report for 2022 is mid-July 2023.
This deadline can be a moving target, and changes or updates to this date will be posted on the EEO-1 website.
FAQs About EEO-1 Reporting
Still have some questions about EEO-1 reporting? Let’s look at some frequently asked questions.
What Are the Penalties for Filing an EEO-1 Report Late?
There are no direct penalties for filing your report late. However, failing to submit your report by the end of the submission period is considered a “failure to file,” which means you’re subject to potential penalties—including a court order to file your report or being barred from receiving any future government contracts.
Who Within the Company Should Take the Lead on Reporting to the EEOC?
Generally, your human resources team is responsible for gathering data and completing the report. In some smaller companies, the business owner or leadership team manages reporting, while in some larger companies, the responsibility for collecting and filing an EEO-1 Report belongs to the firm’s compliance/legal team.
EEO-1 Reporting Is Complex but Necessary
Completing and submitting an EEO-1 Component 1 Report is a complex process that requires collecting data across your entire organization.
That said, it’s also beneficial for ensuring your workforce is made up of a diverse number of employees that, together, help your small business grow and thrive.
And now that you understand not only the importance of EEO-1 reporting, but how to compile the necessary data and submit your paperwork? You have everything you need to file your EEO-1 Report in 2023.
