Federal Compliance Update

Federal 2022 EEO-1 Component 1 Data Collection Notice

The 2022 EEO-1 Component 1 Data Collection is tentatively scheduled to open in mid-July 2023. Updates regarding the 2022 EEO-1 Component 1 Data Collection, including the opening date, will be posted on the EEO-1 website as they become available.

Who Must File

An employer must file an EEO-1 report if they answer YES to one or more of these questions:

• Does the entire company (at all locations combined) have at least 100 employees?
• Is the company affiliated through common ownership or centralized management with other entities in an enterprise with a total employee count of 100 or more?
• Does the company or any of its establishments have a contract with the federal government worth $50,000 or more and have 50 or more employees?
• Is the company or any of its establishments a federal government contractor that serves as a depository of government funds in any amount or a financial institution that is an issuing and paying agent for U.S. Savings Bonds and Savings Notes in any amount?

If you answered NO to all of the questions above, you do not need to file an EEO-1 report. If you are unsure about the answer to question 2, you should speak with an attorney.

Federal Agencies Issue Joint Statement on AI and Automated Systems

Aiming to promote responsible innovation in automated systems—including those marketed as artificial intelligence or AI—four federal agencies have issued a joint statement pledging to monitor the development and use of these systems and vigorously enforce anti-discrimination laws as they become more common. The agencies issued the statement on April 25, 2023.

Issuing Agencies and Laws Enforced

The agencies that signed on to the joint statement are:

• The Equal Employment Opportunity Commission, which enforces federal laws that prohibit employment discrimination based on certain protected traits, such as race and sex;
• The Department of Justice, which enforces federal laws that prohibit discrimination across many facets of life, including education and employment;
• The Consumer Financial Protection Bureau, which enforces federal laws that prohibit discrimination and unfair, deceptive, or abusive practices in the financial marketplace; and
• The Federal Trade Commission, which enforces federal laws that protect consumers from deceptive or unfair business practices.
  

In the joint statement, the agencies note that existing laws and regulations addressing discrimination and other unlawful practices apply to automated systems and innovative new technology use just as they do to other practices.

Automated Systems and Discrimination Potential

The joint statement notes that potential discrimination in automated systems may come from different sources, including problems with data sets, model access, and design and use. For example, automated system outcomes can be skewed by unrepresentative or imbalanced data sets, data sets that incorporate historical bias, or data sets that contain other types of errors. Automated

systems also can correlate data with protected classes, which can lead to discriminatory outcomes.

Employer Impact

The joint statement was issued for informational purposes only and does not create any new legal rights or obligations. Nevertheless, employers that use automated systems to make employment decisions should become familiar with the joint statement and ensure that their policies and practices comply with all applicable laws enforced by the signing agencies.

Important Information

“Automated systems” is used broadly to mean software and algorithmic processes, including AI, that are used to automate workflows and help people complete tasks or make decisions.

• Use of automated systems may perpetuate unlawful bias, automate unlawful discrimination and produce other harmful outcomes.
• Existing laws and regulations apply to the use of automated systems and innovative new technologies just as they apply to other practices.
• The four agencies pledged to vigorously protect individuals’ rights regardless of whether legal violations occur through traditional means or advanced technologies.
• The statement does not create or change any new rights or obligations for employers.

State Compliance Update 

Nothing to report for this month.

Compliance Calendar

May

Nothing this month

June

06/01 – Prescription Drug Data Collection Reporting (group health plans and health insurers submit data regarding drug costs to the Department of Treasury, Department of Labor, and Health and Human Services.

July

07/01 – 2022 EEO-1 Component 1 Data Collection Opening (all private sector employers with 100 or more employees, and federal contractors with 50 or more employees meeting certain criteria must submit)

07/31 – Form 5500 Filing Deadline (calendar year plans), Form 941 Filing Deadline (second quarter)

07/31 – PCORI Fee Deadline