Berkshire Associates - Info Center - Proposed Changes to the EEO-1 Form

Proposed Changes to the EEO-1 Form

By: Suzanne Bryant

After 28 years the EEO-1 form is getting a face-lift. On November 16, 2005, the Equal Employment Opportunity Commission (EEOC) announced the proposed final EEO-1 form. The form has long been used by both the EEOC and The Office of Federal Contract Compliance Programs (OFCCP) to analyze employment patterns for selecting federal contractors for compliance reviews. As a result of the proposed changes, companies may have to re-survey their workforce and make changes to their employee database. On November 28, 2005, the EEOC published their proposal to the Office of Management and Budget (OMB) in the Federal Register. Public comments were accepted until December 28, 2005.

The proposed EEO-1 form is different than what the EEOC originally proposed in June of 2003. Thirty-two interested parties including employers, civil rights organizations, human resources and information technology professionals, and other individuals commented on the original proposal. The version released on November 28, 2005 incorporates some of these comments. The EEOC consulted with the Department of Labor and the OFCCP to compose the newest version of the EEO-1 form. The proposed changes only affect “Section D – Employment Data” which is where employers specify the racial and gender makeup of their workforce. Sections A, B, C, E, F, and G will remain unchanged. The following is a summary of the major proposed changes:

Employers are strongly encouraged to rely on voluntary employee self-identification to identify their ethnicity and race rather than visual observation. Employers may make a visual identification if the individual refuses to voluntarily self identify.
Employers will now need to ask employees to first identify an ethnicity (Hispanic/Latino or Non-Hispanic/Latino) and if the employee identified their ethnicity as Non-Hispanic/Latino, they will be asked to identify a race. The two-question format is more accurate because the Bureau of Labor Statistics found that more people appropriately identify themselves as Hispanic or Latino when asked their origin separately. Employers are not required to track the race of employees who identify as Hispanic or Latino. The EEOC will not be adopting the “Suggested Employee Questionnaire on Race and Ethnicity”, but employers will be required to collect the necessary data to complete the EEO-1 report. The data collection method should offer the opportunity to self identify and a statement should be included stating the voluntary nature of the form.
There will be a new race category of “Two or more races.” This will allow Non-Hispanic/Latino employees to choose more than one race when they self-identify. This does not require them to report the multiple races with which they identify. According to the 2000 Census data, only 2.4% of respondents identified more than one racial category. The reason for the changes to the race and ethnic categories is in response to the changes mandated by the Office of Management and Budget in 1997. The updates are meant to mirror the changes in today’s society, population demographics, and technological advances.
The Asian/Pacific Islander race category will be split into two separate categories: Asian and Native Hawaiian and Other Pacific Islander.
The “Black” category will be renamed “Black or African-American.”
Establishments located in Hawaii will now be required to submit ethnicity and race information. Currently, these establishments are only required to report gender information. They will be required to report Asians separately from Native Hawaiians or Other Pacific Islanders.
The Officials & Managers category will be split into two subcategories:

Executive/Senior Level Officials and Managers and First/Mid-Level Officials & Managers. The reason for the changes to the categories is to provide for better analysis of potential glass ceiling effects in management.
Employees in the Executive/Senior Level Officials & Managers group are those responsible for planning, directing, and formulating policies. These individuals are defined as being within two reporting levels of and frequently interacting with the CEO.

The proposed changes also move business and financial occupations to the Professionals group from the Officials & Managers group for the purpose of improving analysis of mobility trends in the Officials & Managers group.
The Service Workers will not be moved from the 9th to the 6th category and will not be further sub-divided.
There were some slight changes to the titles that comprise the EEO-1 categories that primarily affect the Officials & Managers, Professionals and Technicians categories.

The final version of the EEO-1 will be posted on the EEOC’s website along with a revised instruction booklet. Currently, the EEOC says that the existing form will be accepted for the 2006 submission, and the new race and EEO categories will be required for the 2007 submission. Once the final version is released, employers are encouraged to resurvey their workforce to update current employee files. Revised race/ethnicity self-identification form should be implemented to identify new employees using the newly established categories.

The new form would go into effect starting September 30, 2007 (2007 EEO-1 reporting deadline). Since these are still proposed changes, Berkshire Associates Inc. does not recommend that employers re-survey their workforce or make any changes to their forms until the new EEO-1 report has been finalized. Employers should take steps to ensure their HRIS will support seven races/ethnicity designations rather than the five currently used. Additionally, preparations should be made to accommodate the two levels of Officials and Managers. Proactive employers will make sure their HRIS will allow the subcategories and design a plan to place titles in the new subcategories.

Please feel free to contact us at 800.882.8904 ext. 2001 or e-mail your questions to bai@berkshireassociates.com.

For more detailed information you can access the EEOC website at http://www.eeoc.gov/eeo1/index.html.

UPDATE: On March 14, 2006 the EEOC announced the latest revisions to the EEO-1 Form. Effective January 1, 2007, employers must begin collecting race, gender, and ethnicity data to report on the revised form. Companies are required to file the report on the new form by September 30, 2007. Click here to read more http://www.berkshireassociates.com/info/news/eeo1rev2006.aspx.