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Critical 2026 Update: Binary Sex Reporting Now Required
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Effective for the 2024 data collection cycle (filed in 2025/2026), the EEOC has eliminated the option to report non-binary employees, in compliance with Executive Order 14168. The federal EEO-1 report now provides only binary options: Male or Female. What this means for your employees: If an employee has self-identified as non-binary, or declines to select a binary option, the EEOC permits employers to use existing employment records or, where no records exist, visual identification to make their best determination for reporting purposes. We understand this requirement does not reflect how many employees identify. The categories in the EEO-1 are set by federal government mandate, and Justworks is required to collect and report data accordingly. |
What is the EEO-1 Report?
The EEO-1 Component 1 Report is a mandatory annual compliance survey administered by the federal Equal Employment Opportunity Commission (EEOC). It requires certain employers to report workforce demographic data categorized by race/ethnicity, sex, and job category. The data is used by the EEOC to support civil rights enforcement and analyze employment patterns across industries.
Do all companies have to complete the EEO-1 Report?
No. Most small businesses aren’t required to file. However, the following employers must submit an EEO-1 Report:
- Private employers with 100 or more employees nationwide.
- Integrated enterprises — smaller entities that are part of a group of companies under common ownership or control that collectively employ 100 or more employees must file even if no single entity independently meets the threshold.
- Federal contractors and subcontractors with 50 or more employees and a federal contract or subcontract valued at $50,000 or more.
How do I determine if my company is required to complete the EEO-1 report?
Select a single pay period between October 1 and December 31, 2025 (the “Snapshot Period”) and assess whether your company meets the employee count and federal contractor thresholds described above as of that pay period. Justworks will default to the pay period of 12/21/25–12/27/25 for the 2025 filing year unless you indicated a different period during the data collection process.
For authoritative EEOC guidance, visit the EEOC EEO-1 Component 1 Data Collection website.
Does Justworks file the EEO-1 Report on my behalf?
No. Per EEOC guidance in effect since 2022, PEO customers bear primary legal responsibility for their own EEO-1 filings. This means Justworks is no longer permitted to file in the aggregate on behalf of client employers as was previously allowed. As the reporting entity, your company is responsible for:
- Setting up and maintaining a company-specific account on the EEOC’s Online Filing System.
- Reviewing and certifying the accuracy of your individual report before submission.
- Directly resolving any errors or submission issues with the EEOC.
That said, Justworks will still support you throughout the process.
How will Justworks help me file?
Ahead of the filing deadline, Justworks will provide formatted demographic and compensation data exports to assist with your submission. To do this, we need complete data for every employee — specifically, job category, gender, and race/ethnicity for each person.
Here’s how the process works:
- Employee Survey: Provided you do not opt out, Justworks will contact your employees directly and invite them to self-identify their race/ethnicity and gender through the Justworks platform.
- Admin Form: Your account administrators will be prompted to complete job category assignments and fill in any remaining data gaps.
- Data Export: Once the collection period closes, you can download your formatted report from the Reporting tab in your Justworks dashboard and upload it directly to the EEOC portal.
Important: Justworks cannot provide reporting assistance to any company that opts out of our data collection process. Opting out will also prevent us from assisting with California Pay Data reporting, if applicable.
| A note on timing: The EEOC has not yet announced the opening of the federal filing window for 2025 data. However, because data collection requires meaningful participation from both employees and administrators, Justworks begins this process well in advance of any announced deadline. We encourage all customers to complete their data submissions promptly — regardless of which specific deadlines apply to them — to avoid a last-minute scramble once the federal filing window opens. Some customers may also have state-level obligations with earlier deadlines. See the State-Specific Pay Data Reporting section below for details. |
What if I don’t want Justworks to send a survey to my employees?
You may opt out of Justworks’ data collection if you prefer to compile this information independently, or if you have determined that your company is not required to file. Please be aware that opting out means:
- Justworks will not provide any reporting assistance for the federal EEO-1 filing.
- Justworks will not be able to assist with California Pay Data reporting, if your company is subject to those requirements.
Is the employee survey mandatory?
The survey is voluntary for employees, but all employees must be given the opportunity to self-identify their race/ethnicity and sex. If an employee declines to complete the survey, you are still required to include that individual in your EEO-1 Report. In that case, you may use existing employment records or other EEOC-permitted methods to provide the required data.
Who decides what categories appear in the EEO-1 survey?
The categories are established by the EEOC and other federal government agencies. Justworks understands that identity is personal and that these options may not fully reflect the experiences of all employees — particularly given the new binary-only sex reporting requirement described above. We are required to collect and report data consistent with federal mandates.
Do I need to create a separate account for each of my company’s entities?
No. If your company has related entities under common ownership, you should create a single account for your parent company’s headquarters. The parent company is responsible for filing on behalf of all subsidiaries and locations under its company ID.
First-time filers: During EEOC account registration, you may be asked for the name of the PEO that previously filed on your behalf. If that is Justworks, enter our full legal entity name: Justworks Employment Group LLC.
What if I receive an error notification after submitting?
Because the report is filed under your company’s individual EEOC account, you must work directly with the EEOC to resolve any errors. Justworks is not able to contact the EEOC on your behalf. For guidance on correcting submissions, visit the EEOC EEO-1 Component 1 Data Collection website.
State-Specific Pay Data Reporting Requirements
Many states have enacted pay equity and workforce data reporting requirements that go beyond the federal EEO-1. The following are examples of state-specific obligations relevant to a number of Justworks customers — but this is not an exhaustive list.
State laws change frequently, and your obligations will depend on where your employees are located. We recommend consulting with a licensed employment attorney or reviewing your state’s labor agency website to confirm your company’s specific requirements.
California — Due May 13, 2026
California requires covered employers to submit annual Pay Data Reports to the Civil Rights Department (CRD). Senate Bill 1162 and subsequent guidance have introduced significant changes for the 2025 reporting year, including:
- New Mandatory Fields: Employers must now report each worker’s Exemption Status (Exempt or Non-Exempt), Employment Type (Full-Time, Part-Time, or Intermittent), and Total Annual Weeks Worked.
- Mandatory Penalties: Courts are now required to impose penalties of $100 per employee for a first-time failure to file, and $200 per employee for each subsequent failure.
- Data Storage Requirements: Demographic data collected for pay data reporting must be stored separately from regular personnel files.
For more information, visit the California Civil Rights Department Pay Data Reporting page.
Illinois — Biennial Filing
Covered employers in Illinois must obtain or renew an Equal Pay Registration Certificate (EPRC) biennially. This requires submitting workforce and compensation data to the Illinois Department of Labor. For details on whether your company qualifies and how to file, visit the Illinois Department of Labor EPRC page.
Massachusetts — Due February 2, 2026
Large employers in Massachusetts are required to submit a copy of their federal EEO-1 report to the Commonwealth annually. The standard deadline is February 1, extended to February 2, 2026 due to the date falling on a weekend. For more information, visit the Massachusetts Executive Office of Labor and Workforce Development.
2026 Key Deadlines at a Glance
| Filing | Deadline |
| Federal EEO-1 (2025 data) | Filing window expected to open May 2026 — check eeocdata.org for confirmed dates |
| California Pay Data Report | May 13, 2026 |
| Massachusetts EEO-1 Submission | February 2, 2026 |
| Illinois EPRC | Biennial — confirm your renewal date with IDOL |
Have questions about your specific reporting obligations? Contact the Justworks Support Team or consult with a licensed employment attorney in your jurisdiction.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.