Tuesday, May 2, 2023: U.S. EEOC Published 2nd Notice on Proposal to Eliminate Counting Employees to Determine Filing “Type” for EEO-1 Component 1 Data Collection
Proposal Would “Streamline & Modernize” Data Collection, But Not Change Demographic Data Collected
Comments Due June 1, 2023
Employers have a second opportunity to comment on the U.S. Equal Employment Opportunity Commission (“EEOC”) proposal to eliminate counting employees to determine filing “Type” for EEO-1 Component 1 data collection. The EEOC argues that the proposed revisions to this Information Collection Requirement (“ICR”) would not change the types of demographic workforce data employers have historically collected to report in the EEO-1 Component 1 data survey (i.e., employee data by job category and sex and race or ethnicity). In accordance with federal Paperwork Reduction Act (“PRA”) requirements, the EEOC published a Federal Register Notice of a 30-Day comment period on this proposal that references the Commission’s earlier, similar 60-Day Notice published on November 10, 2022. For a detailed discussion of the proposal, see our story on the 60-Day Notice here.
The 60-Day Notice comment period ended on January 9 with two comments submitted. Written comments on the 30-Day Notice are due by Thursday, June 1, 2023, and may be submitted here or here.
The current White House Office of Management and Budget (“OMB”) approval for the EEO-1 Survey ICR expires on June 30, 2023. The EEOC requested OMB approval for these changes as part of its routine request for a three-year clearance to continue the Component 1 ICR under the PRA. If implemented, these changes would apply beginning with the 2022 EEO-1 Survey Component 1 data collection, both notices stated.
What’s New with the 30-Day Notice?
The 30-Day Notice does not indicate any substantive changes to the proposal, but the EEOC is changing some of the language to “clarify” its burden estimates, which are unchanged. This second notice also included the EEOC’s responses to the two comments submitted on the 60-Day Notice.
The first comment consisted of a brief statement of support for the EEOC’s proposal to create a single type of establishment-level report. The second comment was from the employer association known as the Center for Workplace Compliance (“CWC” – formerly EEAC). The CWC took issue with the EEOC’s burden estimates, but the EEOC responded that the CWC “has misinterpreted the burden estimates provided in the 60-day Notice.”
The EEOC further stated:
“The Commission believes that the burden estimates provided in the 60-day Notice generally overestimate the burden on employers with the largest numbers of establishments. This is because such employers are much more likely to be using a Human Resource Information System (HRIS) which can automatically generate their headquarters reports and establishment reports into a single data file upload. While large multi-establishment employers tend to utilize the data file upload feature, which is much more efficient, the EEOC did not assume this in its burden calculations. Although the EEOC is not changing the “average reporting time” or “aggregate reporting time” associated with each report, the agency has clarified the discussion of the reporting times below in the Formal Paperwork Reduction Act Statement section. In the 60-day Notice, the EEOC stated an “aggregate reporting time” of 5,150,488 hours for multi-establishment employers submitting “Establishment-Level Reports.” Upon further review, this figure could be confusing to members of the public given that multi-establishment employers must also submit “Consolidated Reports” and “Headquarters Reports.” As originally written, the 5,150,488 figure referred to the estimated number of hours associated with “Establishment-Level Reports” only. However, given the reference to “aggregate reporting time,” the EEOC has clarified that when accounting for the “aggregate reporting time” for EEO-1 Component 1 multi-establishment employers to complete a “Consolidated Report” (0 hours) and a “Headquarters Report” (54,786 hours), the total aggregate reporting time for such filers is 5,205,274 hours.” [Emphasis in the original]
The EEOC also rejected the CWC’s assertion that replacing the “Type 6” establishment list report with an “Establishment-Level Report” is “by definition more burdensome and costly.”
Two New Supporting Statements
Also on Tuesday, the EEOC submitted not one, but TWO Supporting Statements to the OMB.
The 19-page “Supporting Statement A” covers the EEOC “Justification” for the ICR. It contains detailed information on, and justifications for, the EEOC’s collection of Component 1 data. Of note for federal contractors, the EEOC wrote (on page 11):
“OFCCP obtains EEO-1 Component 1 reports for certain federal contractors and subcontractors (contractors) pursuant to its own legal authority under E.O. 11246 and its implementing regulations. [citation omitted]. Because OFCCP obtains EEO-1 data for contractors under its own E.O. 11246 authority, some courts have ruled that the Title VII prohibition against disclosure does not apply to OFCCP’s collection of EEO-1 data. See, e.g., United Techs. Corp. v. Marshall, 464 F. Supp. 845, 851-52 (D. Conn. 1979); Sears Roebuck & Co. v. Gen. Servs. Admin., 509 F.2d 527, 529 (D.C. Cir. 1974). Accordingly, the EEO-1 Component 1 data of federal contractors received by OFCCP may be subject to potential disclosure by OFCCP under the Freedom of Information Act (FOIA), although FOIA exemptions may prevent disclosure. For more information, see the Department of Labor’s FOIA regulations at 41 CFR part 70 and frequently asked questions (Freedom of Information Act (FOIA) Frequently Asked Questions | U.S. Department of Labor (dol.gov)”
The 7-page “Supporting Statement B” covers “Collections of Information Employing Statistical Methods.” Of note in that statement is the report (on page 2) of the following efforts by the EEOC’s Office of Enterprise Data and Analytics (“OEDA”).
“As part of the EEOC’s ongoing modernization efforts, OEDA has begun a multi-prong, multi-year frame enhancement project to ensure the EEO-1 Component 1 frame includes all eligible employers. At the end of the 2021 EEO-1 Component 1 data collection cycle, a total of approximately 98,000 employers were identified as being potentially eligible. The EEOC does not believe this number accurately reflects the total number of eligible employers that should be filing the EEO-1 Component 1 report(s). For example, in 2020 alone, the U.S. Census Bureau’s Statistics of U.S. Businesses (SUSB) estimated there were 115,955 firms (i.e., employers) with 100 or more employees. Although the SUSB methodology differs from that of the EEO-1 Component 1, the differences in how employees are counted to determine eligibility does not wholly account for the discrepancies. Based on these numbers, the EEOC believes its current EEO-1 Component 1 frame undercounts the number of eligible employers. However, based on data trends over the last three EEO-1 Component 1 data collection reporting years (i.e., 2019, 2020, and 2021) as well as the ongoing enhancements, the EEOC believes the total number of filers submitting at least one report may increase to 110,000 for reporting years 2022 through 2024. Accordingly, the EEOC is calculating the burden estimates for this Information Collection Review (ICR) package based on this revised estimate of the number of filers.” [footnotes/citations omitted]