Beware: Increased Focus on EEO – 1 and VETS – 4212 Reports

Companies must file the EEO-1 report if they have 100 or more employees or if they have 50 or more employees and $50,000 in federal government contracts. Employers who have filed an EEO-1 report previously should receive a reminder letter with their company’s log-in information, or log-in information can be obtained from the Joint Reporting committee at While the EEO-1 survey was open until October 30 in 2015, the normal filing period runs from July 1 to September 30.

The EEOC has issued a proposal to collect W-2 pay information and hours worked in the EEO-1 reports beginning in 2017. The pay information would be collected in pay bands and reported in job groups, broken down by race, ethnicity, and gender. Collecting such information is designed to give the EEOC and OFCCP insight into pay disparities across industries and occupations. It will enable the two agencies to conduct investigations, assess the validity of complaints of discrimination, and identify existing pay disparities that warrant an audit.

The U.S. Department of Labor, state agencies, and politicians are focused on the pay gap experienced by females and minorities. With an increased focus on pay disparity, it is recommended that employers conduct an audit of their pay practices to ensure that their compensation plan is not discriminatory. It is generally recommended that a third party conduct the pay disparity analysis under the direction of an attorney, as that approach confers the strongest attorney-client privilege to protect the confidentiality of the results. MSEC can run pay-disparity analyses for employers who want to ensure they are ready for the EEO-1 pay reporting in 2017. Once employers have identified problem areas through pay-disparity analysis, MSEC can assist with a compensation plan that best fits the needs of the company.

The VETS-4212 is completed by companies with a federal contract of $100,000 or more. There is not an employee threshold to be met in order to file the VETS-4212. The filing period for the VETS-4212 is from August 1 to September 30.

Employers should start gathering information for the 2016 EEO-1 and VETS-4212 reports, and turn them in early. The help desk and website tend to become overwhelmed toward the end of the reporting period. Employers will want to monitor developments with the proposal to add pay information to the 2017 EEO-1 reports, as the potential impact could be significant. If you need help, call us at 800.884.1328.