What Your Business Should Know About EEO-1 Compliance

January 6, 2020 at 5:00 AM
by InterConnect Human Resources Services

Federal contracting and subcontracting supports millions of jobs and thousands of private companies across the United States. From sole proprietorships to multinational corporations with a global reach, the United States government relies on these firms to provide goods and services that keep the government running.

Working for the federal government, however, means that firms need to follow its mandates, such as using accrual rather than a cash accounting system. 

Just as important, federal contractors need to keep up with voluminous amounts of paperwork. One of the vital forms they require is a company’s report on EEO-1 compliance.

In our experience, many of the smaller and medium-sized federal contractors and subcontractors out there struggle with paperwork requirements. Newer firms to federal contracting especially benefit from knowing about these types of requirements and receiving help in fulfilling them.

EEO-1 Compliance Reporting Explained

The EEO-1 survey serves as a survey of companies, including federal contractors. It requests the following information about your company’s employment makeup:

  • Ethnicity data (Hispanic or Latino/Non-Hispanic or Latino)
  • Gender Information
  • Race Information

This information must be broken up by EEO-1 Category. Additionally, you must file a separate report for EVERY location in which you have employees.

Since 1966, the federal government has used EEO-1 forms to gather information from certain companies about hiring, retention, and promotion of women and minority employees. 

Employment data submitted on EEO-1 reports from companies not engaged in federal contracting remains confidential under Title VII of the Civil Rights Act of 1964.

The same law, however, excludes federal prime and subcontractors from confidentiality. Data collected remains restricted. The US Department of Labor’s Office of Federal Contract Compliance Programs must approve public requests to access this data.

Types of Companies That Need to File an EEO-1 Report

Three types of companies have an obligation under federal law to file regular EEO-1 reports on their company workforce. These are:

  • All private employers with more than 100 employees
  • Companies with fewer than 100 employees if said company is owned by or partners with a company with over 100 employees
  • Federal contractors with 50 or more employees and also $50,000 or more per year worth of work

Like all too many other government mandates, the EEO-1 form includes lengthy instructions and is relatively difficult and time-consuming for many. Small and medium-sized businesses often find it convenient to contract out for help in fulfilling reporting requirements.

Incorrect or untimely submissions of mandated paperwork can threaten a company’s ability to obtain further federal contracting work and also bring other sanctions as well. 

Services That We Provide

At InterConnect Human Resources Services, we offer a range of consulting services to help employers remain in compliance with federal government requirements. 

Our team examines your workforce and gathers the necessary information. Because we bring years of experience to the task, our experts can fill out these forms quickly with information gathered or provided. 

Many of our clients would have to spend many staff hours or even days to fill out these forms. This distracts your team from their core functions of making your business as productive as possible. 

In addition to assisting clients with the EEO-1, we can also help in completing the required VETS-4212 report filed with the government on September 30 of each year.

Other services that InterConnect offers include:

  • Affirmative action planning
  • OFCCP audit support
  • Pay equity and compensation analysis
  • Diversity and inclusion training

At InterConnect Human Resources Services, our range of programs is geared toward helping companies meet both federal requirements and public expectations of fair treatment for workers.

Reach Out Today

Learn more about our spectrum of services for federal contractors and other businesses. Our professional and friendly staff will be happy to answer any questions or to schedule an appointment for service.