New EEOC report takes effect in 2007

Mandated data is collected and is used to detect and correct discriminatory practices regarding race, ethnicity and gender. The report has been modified to include additional race and job categories. The new EEO-1 report must be used beginning Sept. 30, but it should not be used for a company’s 2006 survey.

The law has not been modified since first created in 1966. The changes are precedent-setting. For example, Hawaii used to be excluded but is now required to collect data.

An adverse impact analysis of the selection process for each job or category of jobs must be conducted. Adverse impact is defined as hiring, promoting or making any other employment decision disadvantageous to individuals in protected classes. If adverse impact is found, employers must identify and eliminate the aspects of their employment processes causing the adverse impact.

Previously, the race and ethnic categories for reporting purposes were: white (not of Hispanic origin), black (not of Hispanic origin), Hispanic, Asian or Pacific islander, and American Indian or Alaska Native. The new form adds three categories: Asian (not Hispanic or Latino), two or more races (not Hispanic or Latino), and native Hawaiian or other Pacific islanders (not Hispanic or Latino).

New job categories separate officials and managers into two different levels. One is executive- and senior-level officials and managers. The second is entry- and mid-level officials and managers.

Although companies have always used voluntary self-identification forms to be filled out by employees, the EEOC is strongly recommending the completion of the forms instead of visual identifications by employers in the absence of complete forms. The EEOC has stated that visual identifications or the use of employment documents are only permitted if requests for self-identification remain unanswered.

Although not required, the EEOC is strongly advising businesses to resurvey all associates and ask for voluntary identification. 

One benefit of the new form is the recognition of changing demographics in the workplace. The additions to the form are designed to enable the EEOC to more precisely track the progression of women and people of color into top management positions.

A potential drawback is that the form may confuse employees. The new, two-question format will first ask if team members are Hispanic or Latino. If the answer is yes, no other categories are to be marked. If the answer is no, then staff members should finish completing the form by stating their race. The anticipated problem is that employees will answer yes to the first question and also complete another category. Therefore, the EEOC is asking companies to explain that if people respond affirmatively to the first question, any answer to the second question will not be included in the EEO-1 report.

Another concern is that the new data might lead to EEOC commissioners filing more charges of discrimination against organizations. This issue has been raised, though technically the EEOC is unable to sue until a discrimination charge is received from a worker. 

The data is utilized by both the EEOC and the Office of Federal Contract Compliance Programs. The OFCCP reporting categories will still adhere to the old EEO-1 categories, as OFCCP is not internally prepared in 2007 to receive the additional data from the new report. However, the OFCCP is preparing to align its categories for the 2008 report.

Compliance with the new report is mandatory. Now is an excellent time to begin collecting the additional data in order to be prepared by deadline.

Lynne Haggerman, M.S., is president/owner of Haggerman & Associates, a firm specializing in management training, retained search, outplacement and human resource consulting. She can be reached at lynne@haggermanandassociates.com.[[In-content Ad]]