Clarifying the Updated EEO-1 Race Requirements

By Shelli Johnson, Analyst, Biddle Consulting Group

The EEOC, in consultation with the OFCCP, has revised the EEO-1 report effective September 2007. This means that the September 2008 EEO – 1 filing and beyond will require the reporting of 7 race categories instead of the previously stipulated 5 race categories. The 7 race categories include Hispanic or Latino, White (Not Hispanic or Latino), Black or African American (Not Hispanic or Latino), Asian (Not Hispanic or Latino), American Indian or Alaska Native (Not Hispanic or Latino), Native Hawaiian or Pacific Islander (Not Hispanic or Latino), and Two or More Races (Not Hispanic or Latino). There is currently no requirement to conduct a costly resurvey of your entire work force. However, employers will need to track these new race categories with their new applicants and hires. Self Identification forms moving forward will need to include a two question component with the first question being “Are you Hispanic or Latino?” If the answer is yes, they do not move on to the following 6 race categories. If the answer is No, they can then complete one of the 6 remaining race categories. The two or more race and Hispanic/Non-Hispanic differentiator was a political decision which does not allow Hispanics to be considered in the two or more race category. BCG suggests resurveying your entire work force by having employees fill out the new self-identification forms at a cost effective time period such as to coincide with yearly performance appraisals or a change in HR systems.

Another common misconception regarding race categories includes the placement of Native South Americans as Hispanic or Latino when in fact they should be categorized as Native Americans.

Interim guidance has been given by the OFCCP as to how to calculate Adverse Impact analyses within affirmative action plans in light of the new race categories, specifically two or more races. The guidance suggests that either the 7-race category system may be used with the two or more race category becoming its own, separate, and indivisible sub group or employers may continue to use the classic 5-race category system. In continuing to use the classic 5-race category system employers would need to collect and retain two separate sets of data. For example, for EEO-1 reporting an employee may identify as two or more races, but when using the 5 race category system a primary race would need to be retained separately for the AAP adverse impact analyses. This development should be watched closely for guidance because of potentially severe financial and political implications.