Management's Discussion and Analysis

Introduction

On July 2, 2004, the Nation marked the 40th anniversary of the passage and signing into law of the Civil Rights Act of 1964. The Act was the subject of the longest continuous debate in the annals of the U.S. Senate. What emerged is one of the most significant pieces of legislation in our history - one that addresses discrimination in voting, education, public accommodations, Federal programs and, of particular relevance to EEOC, employment. Created by Title VII of the Civil Rights Act, EEOC opened its doors one year after passage of the Act. Since that time, the Commission has played the pivotal and preeminent role in pursuing the enforcement of Title VII and related civil rights employment laws, and the employees of the Commission, past and present, have been vital to ensuring that its goals are met. Through their actions, the Commission has rendered an invaluable service to the Nation. As we reflect upon the impact of Title VII, we note the significant progress that has been made since its passage and celebrate the positive difference that it has made for all Americans. However, we also acknowledge that there are still many miles to travel on the road to ensuring equal employment opportunity for all.

EEOC continues to track the trends and issues affecting America's workplaces. These trends and issues are evolving. In EEOC's early days, the agency dealt primarily with issues that were related to race and hiring, gender and hiring - getting a foot in the door. Later, the glass ceiling was at the forefront - that invisible barrier that seemed to prevent women and people of color from rising through the ranks. While these issues have not gone away, no longer are they the sole focus of our mission. We are paying very close attention to emerging trends. For example:

• We see an increase in acts of sexual harassment committed against teenagers - usually, but not always, girls - working in fast food and retail establishments where typically turnover is high, training is minimal, and the managers are sometimes teens themselves.
• We are dealing more frequently with accent discrimination.
• Over the past decade, charges of pregnancy discrimination have increased, soaring 30% to totals far exceeding 4,000 each year.
• We have seen an increase in retaliation charges, citing adverse action taken against employees by employers for complaining about discriminatory treatment, cooperating with an EEOC investigation, or filing formal charges.

We are challenged to keep pace with the changes in the workplace and emerging issues and trends while, at the same time, we are working proactively to influence and help shape the workplace of the future. We use workplace trends, shifting demographics, and changing workforce dynamics to approach our work more strategically. To ensure that our enforcement and prevention efforts address the needs of today's workplace, we track workplace issues and trends, conduct research studies to support and inform our work, issue policy guidance to protect workers' rights and facilitate compliance, promulgate rules and regulations to clarify the law and ensure compliance, and collaborate with a broad range of stakeholder groups. All of these activities are underpinnings of the core work of the agency and assist in meeting the challenges we face in carrying out our mission. Specific regulatory and policy guidance activities in FY 2004 include:

• No Fear Act: A regulation implementing Title III of the No Fear Act was published as the final rule with a request for comments on January 26, 2004, 69 FR 3483. Title III of the No Fear Act requires each agency to post on its public website certain summary statistical data concerning EEO complaints filed with the agency. The interim final rule repeats the categories of summary statistics that must be posted; defines some of the terms used in the statute; and generally specifies the time, form, and manner of the posting obligation.
• National Origin Guidance: Responding to demographic changes, the Commission released updated guidelines on national origin discrimination, covering a range of issues such as customer preference, security requirements, accent discrimination, English fluency, and harassment.
• EEO-1 Revisions: On June 11, 2003, the Commission published a revised EEO-1 Report (also known as the Employer Information Report) for public comment. This report provides a snapshot of an employer's workforce, broken down by gender, race, and ethnicity. On October 29, 2003, the Commission held a public hearing, at which representatives of employer and civil rights groups testified.
• ADEA Exemption for Retiree Health Benefits: On April 22, 2004, the Commission voted to approve an exemption to the ADEA, which is intended to
  1) preserve employer-sponsored retiree health benefits for millions of older Americans, and 2) make clear that the Commission supports the efforts of employers to provide this important benefit to their retirees.
• Uniform Guidelines on Employee Selection Procedures - Applicant Definition: With increasing use of Internet recruitment and web-based resume posting, one of EEOC's primary regulatory goals continues to be the question of what types of EEO records employers need to maintain as part of their online recruitment practices. In conjunction with our sister Uniform Guidelines on Employee Selection Procedures (UGESP) agencies [the Departments of Labor and Justice and the Office of Personnel Management (OPM)], we published proposed questions and answers in the March 4, 2004, Federal Register, defining "applicant" for purposes of Internet and related electronic technologies for recruitment and selection.

Consistent with our goal to meet the needs of the 21st century workplace, we implemented a new five-year strategic plan in FY 2004. The new plan articulates new strategies and builds upon past successes. It contains three overarching strategic objectives that encompass the key principles of our mission to provide Justice and Opportunity and encourage an Inclusive Workplace and to support these principles by fostering Organizational Excellence. For each strategic objective, the plan integrates and focuses on the elements of our Five-Point Plan, which is described in the following table. (Our strategic plan is available on the EEOC website at www.eeoc.gov/abouteeoc/plan/strategic_plan_04to09.html).

This framework provides the foundation for our Strategic Plan. The Plan contains 24 long-term performance goals to measure our effect on creating fair and inclusive workplaces across America. These measures of success are more results-oriented and represent a major step forward in how we view, manage, and carry out the important work of EEOC. Our progress in achieving the goals of these measures is summarized below and discussed later in this section and in the performance section of this report.

Also, included in this section are financial highlights, which focus on the five financial statements prepared by EEOC: the Consolidated Balance Sheet and Consolidated Statements of Net Cost of Operations, Changes in Net Position and Financing, and the Combined Statement of Budgetary Resources.

This page was last modified on November 18, 2004

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