EEOC Cracks Down on Non-Compliance With Worker Demographic Reporting Requirements
The Equal Employment Opportunity Commission (EEOC) filed 15 lawsuits against various employers across 10 states on May 29, citing failures to meet federal EEO-1 Component 1 reporting obligations. The EEOC’s strong response highlights its enforcement priorities and the legal and financial risks of non-compliance.
This mandatory reporting applies to private employers with 100 or more employees. It involves submitting workforce demographic data categorized by job role, sex, race and ethnicity. As EEOC General Counsel, Karla Gilbride, stated when asked about the lawsuits and their significance, “This data collection is a critical tool for ensuring compliance with Title VII's prohibition on workplace discrimination.” EEOC Commissioner, Charlotte A. Burrows, echoed this sentiment, commenting that “the EEOC remains committed to using all our tools to remedy discrimination and fulfill the promise of equal opportunity in our nation’s civil rights laws.”
Employers who do not meet the EEO-1 Component 1 reporting obligations could face several legal and administrative consequences. One of the most severe repercussions for non-compliance is the possibility of court actions, like those initiated by the EEOC. While the remedy for a successful suit is to compel the employer to submit its reporting data, defending against any lawsuit can be costly and may trigger more extensive audits and reviews of a company’s employment practices in the future. This could lead to increased scrutiny that can be both pricey and time-consuming for any business.
The employers facing lawsuits span various industries, including retail, construction, restaurant, manufacturing, logistics and services. The legal actions, which mark a significant enforcement step by the EEOC, were filed in federal district courts across the country. These lawsuits signal a sea change in the EEOC’s response to repeated non-compliance with data collection obligations. Employers should take note.
What Does This Mean for Employers?
This year’s reporting cycle for businesses’ 2023 EEO-1 Component 1 data began on April 30, 2024. As the EEOC continues to gather this data, with a deadline set for June 4, 2024, these lawsuits serve as a stark reminder to all eligible employers about the importance of compliance with federal reporting requirements.
Please contact Stephanie Poucher or any member of Phelps’ Labor and Employment team with questions of for compliance advice and guidance.
