Everything You Need To Understand About EEOC Laws

Head’s up!  If you operate a business with more than 100 employees, you must comply with EEOC laws and EEOC regulations! 

Most business know about the Component 1 data that is due by May 31st, but now, in addition, the EEOC is requiring Component 2 data from 2017 and2018 by September 30, 2019. 

We know you do all you can to remain in EEOC compliance with Equal Employment Opportunity laws. That’s why here at PayWow, we do our best to help keep you informed.

We don’t want you to miss a beat!

Our mission is to constantly support businesses and their owners. For us, it’s about more than helping you pay your employees and contractors. We want you to succeed and stay in business. You’ve got goals, and we’re here to help you reach them. Keep reading to find out more about EEOC laws and regulations.


What is the EEOC?

The United States EEOC, or Equal Employment Opportunity Commission, is the government agency responsible for enforcing federal work descrimination laws.  

EEOC laws make it illegal for a business to discriminate against any potential or current employeebecause of their race, religion, sex, country of origin, age or disability. Work discrimination law protects many American workers.  

If your business has 15 or more employees, you’re subject to EEOC laws. Outside of the hiring process, these EEOC laws apply to many different employment situations, including termination, promotion, training, compensation, benefits and harassment cases.  

In addition to preventative efforts to stop discrimination, the EEOC has the authority to investigate any charges of discrimination that occur in the work place.  The EEOC can even file a lawsuit to protect the rights of employees and the public.


What is the EEO-1 requirement?

EEO-1 is short for The Employer Information Report EEO-1, an EEOC compliance survey required of companies who fit the standard for EEOC regulations. For the report, employee data has to be categorized by race, gender and job category. 

If your business meets the Equal Employment Opportunity Commission’s (EEOC’s) criteria, you must complete Standard Form 100 in order to file the EEO-1 report. 

This report is used to track the EEOC compliance of any organization that claims to be an equal opportunity employer.

Who Do EEOC Laws Apply To?

To find out whether or not your small business must comply with the EEOC’s requirement to file an EEO-1, check this quick list:

  • 100 or more employees; or
  • fewer than 100 employees, but owned by or affiliated with another company which, together, brings the employee total to 100 or more; or
  • 50 or more employees, with a federal government prime contract or first-tier subcontract worth $50,000 or more. 

When do I file?

You should have certifiedand filed your report with the EEOC office of Enterprise Data and Analytics’ Employers Data Team by May 31, 2019.  

What about the Component 2 requirement?

Begin preparing to submit Component 2 data NOW! Component 2 refers to compensation data.  You will need to submit data for both 2017 and 2018 by September 30, 2019. Component 2 has been reinstated, and while there are appeals happening, all signs point to the fact that you will need to file this information.


How do I file?

In a word? Online. From the EEOC directly:

“EEO-1 reporting is an electronic, online application. The EEOC requiresthat EEO-1 reports be submitted via the EEO-1 Online Filing System, or as an electronically transmitted data file. Any employer who claims that the electronic submission of Standard Form 100 would create undue hardship may apply to the Commission for a special reporting procedure…”

You will need to go to the EEOC’s log in and file your report.  If you are a business filing for the first time, you will need to compile your data and register first. Make sure you do this in advance of the deadline.

* Remember: You only need information for your employees, not applicants! Also, the data you gather must be based upon self-identification information from your employees.  In other words, you can not just make a guess at an employee’s race or gender. The information you put on the form has to come from the employee.

PayWow’s got your back.

You can count on PayWow to keep looking out for information and small business compliance updates that are important to you as an entrepreneur, and to your small business!  Bookmark this blog to stay up to date! 

Looking for an amazing payroll solution? We’ve got you covered. Check out our website to find out more about how we can help you pay your employees and contractors efficiently.

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