Special Report: How to Navigate EEOC Compliance Changes

August 22, 2019 Lynne Jackson

New EEOC report due September 30

Striving to comply with regulations is part of life in healthcare. When you think you’re  compliant with the diverse array of government regulations, a new regulation arises that requires you adjust your processes.

As an Equal Opportunity Employer, you agree not to discriminate against any employee or employment candidate based on their race, color, religion, national origin, sex (including pregnancy), physical or mental disability, or age (40 or older). The EEOC requires you demonstrate compliance by submitting proof you adhere to fair hiring and employment practices.

The EEOC uses this data to track employment trends for women and minorities to combat discrimination and support Civil Rights legislation. In 2016, the requirements were expanded to include new criteria but then suspended in 2017 before the reporting became mandatory.  In 2019, EEOC requirements were revisited and the new criteria mandated. 

Starting September 2019, you need to expand your reporting criteria to stay compliant with the U.S. Equal Employment Opportunity Commission (EEOC) requirements.

Previously organizations with 100 or more employees and federal contractors with at least 50 employees and government contracts of $50,000 or more had to classify employees by job category, race, sex, and ethnicity on the EEO-1 form. 

Now the following new Component 2 criteria must be added to 2017 and 2018 EEO-1 forms reports by September 30:

  • Salary band
  • Hours worked

These criteria may sound simple. You can probably document the reported genders, races, and ages of your employees relatively quickly. But collecting wage and hours worked data can take an enormous amount of time unless your infrastructure is configured to help.

Match job categories

You need to classify each employee’s position based on EEOC-1 job classifications rather than their current title. This process can require a good bit of manual manipulation and decision making. 

If you decide to manually collect and organize this data, you should first list everyone in your organization and then match their positions to the most logical EEOC-1 job classification.

Once you define the right classification for each position in your organization, you must document the number of employees in each position according to their gender and race.

Ensure the money and hours add up

Collecting salary information can be tricky. The most efficient way is collecting W2 data and using it to determine how many employees work in each salary band. If you cannot easily collect and tabulate W2 data, you can start by adding up hourly wage information for each group and matching it to a salary band. For part-time hourly workers, add up what they earn in 20 hours and multiply it by 12 to find the appropriate salary band. 

Considering the predominance of hourly employees in skilled nursing and senior care, it could take a significant amount of time to process this data. However,  pulling information from an automated time and attendance solution can help. ull this information. 

Consider SmartLinx EEOC Reports 

SmartLinx created two new EEOC reports for a September 5 release to help clients more easily collect the information they need to comply with EEOC reporting requirements. 

SmartLinx streamlines the process by pulling the appropriate data from integrated attendance and payroll systems and consolidating EEO-1 Component 2 data, which make it easy to complete the EEO-1 online form.

Remember to submit your updated EEOC report by September 30. If you would like to learn about SmartLinx EEOC reporting capability, email hello@smartlinxsolutions.com. 

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