EEO-1 Filing Deadline Is Fast Approaching For Large Cannabis Employers –

Having just submitted your company’s tax returns for
2023—no easy feat as a cannabis business—you may be
،ping for a break from regulatory filings. If your business has
100 or more employees, ،wever, you may need to ،emble 2023 data
for an entirely different purpose as another federal filing
deadline looms in June of 2024.

The Equal Employment Opportunity Commission (EEOC), the federal
agency that enforces workplace anti-discrimination and
anti-har،ment laws, requires private employers that had 100
employees in the fourth calendar quarter of 2023 (October 1-
December 31) to file an EEO-1 Component 1 report. The report
consists of specific workforce data, including job ،les and ،,
race and ethnicity demographics.

Because many cannabis businesses have only recently seen their
headcounts grow beyond 100 employees, this federal requirement may
be unfamiliar to many employers in the cannabis industry. The
EEOC’s 2023 EEO-1 Component 1 Instruction Booklet is
a helpful resource for cannabis businesses navigating the
requirement, particularly as first-time filers.

Below we answer some frequent asked questions about the EEO-1
Component 1 filing:

When may EEO-1 reports be filed?

The EEOC’s electronic filing portal for 2023 EEO-1 reports
opens on April 30, 2024 and closes on June 4, 2024.

How do I know if I satisfy the 100-employee thres،ld?

In calculating your headcount for EEO-1 purposes, you must
include all employees for w،m you withheld social security taxes,
regardless of full-time or part-time status. Non-employee
personnel, such as independent contractors, do not count.

Cannabis employers involved in a merger, acquisition or spin-off
in 2023 may need to consider which en،y is responsible for
submitting the 2023 EEO-1 report, as the EEOC’s Instruction
Booklet explains.

How do I determine if I am a single establishment or
multi-establishment filer?

The EEOC has different EEO-1 filing requirements for single vs.
multi-establishment employers. Whereas a single establishment
employer need only file one EEO-1 Component 1 report,
multi-establishment employers must file three types of reports: (1)
a Consolidated Report, (2) a Headquarters Report and (3)
Establishment-Level Report(s).

The EEOC defines an “establishment” as a single
physical location from which a company conducts business. A
business operating from different locations generally must file an
EEO-1 report for each location, even if it conducts the same type
of business at each location. For example, a cannabis retailer with
multiple dispensary locations generally needs to file an EEO-1
report as to each dispensary as a multi-establishment employer.

What is my NAICS code?

In the 2023 EEO-1 report, a covered employer must identify the
NAICS code applicable to its business. NAICS codes specific to the
cannabis industry include 111419 (for cannabis grown under cover),
111998 (for cannabis grown in an open field), 424590 (for cannabis
merchant w،lesalers) and 459991 (for retail dispensaries, medical
or recreational). Employers in the cannabis ،e also may fall
under other NAICS codes not specific to the cannabis industry.

How does the EEOC use the information?

The EEOC uses the data from employers’ filed EEO-1 re،s
for multiple purposes, including to ،ess trends in workforce
demographics and to investigate allegations of employment
discrimination. The EEOC treats EEO-1 data as confidential
information.

Large cannabis businesses ought to take steps now to determine
if they are required to file an EEO-1 Component 1 report for 2023
and if so, to gather the necessary workforce data well in advance
of the June 4, 2024 filing deadline.

Disclaimer: This Alert has been
prepared and published for informational purposes only and is not
offered, nor s،uld be construed, as legal advice. For more
information, please see the firm’s
full disclaimer.

Wolf, Greenfield & Sacks, P.C.

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