New EEO-1 Rules for PEOs

Yesterday, the EEOC updated its procedures “for the reporting of client employer data by Professional Employer Organizations (PEOs), Administrative Services Organizations (ASOs), Human Resource Outsourcing organizations (HROs), and similar organizations which choose to file on behalf of eligible EEO-1 Component 1 client employers under third-party human resource agreements (i.e., third-party human resource organizations” to include the following:

  1. Every eligible client employer on behalf of which a third-party human resource organization (e.g., PEO, HRO, ASO) chooses to file will be required to have its own company registration under the client employer’s EIN (i.e., Employer Identification Number, Federal Tax Identification Number, FEIN). The company registration record contains basic contact and location information and resides within the EEO-1 Component 1 Online Filing System. This company registration must be for the client employer itself and not the third-party human resource organization filing on the client employer’s behalf. Additionally, all filers will be required to have an individual-level user account to gain access to the EEO-1 Component 1 Online Filing System.
  • A third-party human resource organization may still prepare and file an EEO-1 Component 1 Report(s) on behalf of eligible client employers. After the eligible client employer creates their company registration record, they can invite their third-party human resource organization (e.g., PEO, HRO, ASO) to create an associated user account.
  • A third-party human resource organization will no longer be permitted to file for the eligible client employer as an “establishment” of the third-party human resource organization. In other words, a third-party human resource organization may not submit an EEO-1 Component 1 Report(s) that includes itself and a client employer and/or a report that includes multiple client employers.
  • A third-party human resource organization choosing to submit data file uploads on behalf of eligible client employers must do so separately for each client employer. The bulk or consolidated upload of data files for multiple client employers by a third-party human resource organization will not be permitted. Every eligible client employer on behalf of which a third-party human resource organization is choosing to file must have a separate data file upload under that client employer’s company record in the EEO-1 Component 1 Online Filing System .

California Warehouse Notice

Under a new California law, employers with 100+ nonexempt employees in any one CA warehouse distribution center, or 1,000+ nonexempt employees across warehouse distribution centers (including temporary employees), must provide a notice to each warehouse employee subject to a quota

The notice must contain a written description of each quota to which the employee is subject, including the quantified number of tasks to be performed or materials to be produced or handled, within the defined time period. The notice also must include any potential adverse employment action that could result from failure to meet the quota.

Vax Mandates Still Being Enforced By Courts

Courts are still upholding employer policies mandating vaccinations. Recent example: Seven Hawaiian Airlines workers failed in their attempt to block the airline from enacting its requirement that all employees get vaccinated or face termination. A federal judge ruled Wednesday that the workers failed to show that they face irreparable harm or that they are likely to succeed in their suit.

DOL To Add 100 Investigators To Wage-Hour Division

The U.S. Department of Labor said it will add 100 investigators to its Wage and Hour Division to assist the agency’s efforts to enforce labor laws covering more than 148 million workers.

H-1B Season Opens

On January 28, 2022, USCIS announced the registration for the FY 2023 H-1B quota lottery will open March 1, 2022, at noon EST and will close March 18, 2022, at noon EST. If USCIS reaches the annual quota by March 18, 2022, USCIS will conduct a random lottery to select registrations and notify registrants of selection results by March 31, 2022.

Washington Cares Act Delayed

On January 27, 2022, Washington Governor Jay Inslee signed House Bills 1732 and 1733, delaying and amending the Washington Cares Act (WA Cares).  As such, an employer’s obligation to withhold WA Cares employee premiums begin on July 1, 2023, and require employers to refund employees for any WA Cares premiums that have already been collected within 120 days of withholding. 

ACA Reporting To Add Grace Period?

The IRS issued proposed rules to allow for an automatic the 30-day extension for issuing ACA forms to individuals. The IRS has also stated that the proposed relief is available for 2021 reporting. This should provide some relief for those Applicable Large Employers (“ALEs”) and health plan providers nervously preparing for the looming January 31, 2022, deadline. If put in effect, employers would be able to receive an automatic 30-day extension even though the filing deadline remains January 31st. Therefore, any employers and coverage providers that deliver the forms, as required, within 30 days of January 31, are still in compliance with their ACA form-filing requirements.

Written by: Gordon M. Berger, Partner 

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