Employers who fail to comply with requirements to submit data on employee demographics to federal agencies can face great expense and expose their companies to legal liability.

On January 29 the U.S. Equal Employment Opportunity Commission and President Barack Obama announced proposed changes to the information included in the employer information reports, or EEO-1s. In addition to current requirements to submit worker profiles sorted by race, ethnicity and gender, along with job types, by September 2017 they may also need to include pay ranges and hours worked.

These annual reporting obligations apply to employers subject to Title VII and those with more than 100 employees, as well as eligible government contractors with more than 50 employees. These reports are in addition to the annual affirmative action data required by the Office of Federal Contract Compliance Programs.

Companies have a significant data-sharing obligation to the federal government, and must take care to follow legally sound compliance reporting practices to avoid mishaps.

“What employers need to do is not just take raw payroll data and accept it,” said Steven Suflas, Managing Partner of Ballard Spahr LLP’s Denver office.

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