EEOC Proposes Eliminating Employer Reporting Requirements Concerning Workforce Demographics

Key Takeaways

The EEOC recently voted to approve a plan to rescind the requirement that large employers share data about the race and gender of their workforce with the federal agency. The plan proposes the elimination of the required submission of EEO-1 forms for employers with 100 or more employees, as well as contractors with at least 50 workers. In addition to the rescission of EEO-1 forms, the EEOC’s plan would also rescind EEO-2, EEO-3, EEO-4 and EEO-5 reporting disclosures on race and sex demographics, which apply to unions, state and local entities, and public schools, respectively. Under the proposal, the Commission retains the authority to request demographic information in narrower contexts in connection with investigations and enforcement actions.

Following the vote of approval, the plan was published in the Federal Register to allow for a 30-day public comment period. Comments regarding the proposal must be received by the Commission on or before August 24, 2026. A public hearing is scheduled for August 11, 2026.

What the EEOC is Saying About Existing EEO-1 Data Collection Practices

The EEOC argues that the 60-year-old mandated reporting of race and sex data, collected without connection to discrimination charges, constitutes government-compelled racial classifications, raising constitutional concerns under the Equal Protection Clause, and promotes stereotyping. According to the Commission Chair, Andrea Lucas, the EEO-1 reporting requirements could encourage employers to discriminate against workers and applicants who are not part of a protected group. The EEOC also cites the financial burden on companies of maintaining, processing and preserving large demographic datasets.

What This All Means for Employers

The proposed rule is not yet final, so employers should continue their workforce data collection practices. Employers’ current reporting obligations remain in effect during the public comment period. The data found in EEO-1 reports can also be valuable for private sector employers to not only ensure that they are not engaging in discriminatory practices but also support risk management efforts, such as conducting pay equity studies. The data can also be beneficial for defending against reverse discrimination claims. This is especially relevant in light of EEOC Chair Andrea Lucas’ recent appeal to white men to file bias charges if they believe they have faced workplace discrimination based on race or sex. Disparate impact claims remain a viable course of action under Title VII of the 1964 Civil Rights Act.

Second, employers may still be obligated to collect and retain this data under other federal and state statutory provisions. Several states also mirror some or all of the current EEO-1 demographic data collection requirements, with more likely to follow if federal reporting requirements are rescinded.

Finally, even though EEOC has made it clear that it is committed to eliminating workplace distinctions based on race or sex, it retains the authority to request race and sex data during investigations—a practice that Chair Lucas has publicly affirmed will continue. Therefore, going forward, employers should:

• Remain attentive to the notice and comment period for the proposed rule and any resulting litigation or changes to the proposal;
• Continue collecting demographic information and maintain EEO-1 compliance until the proposed rule becomes final;
• Consult your state and local workforce data recordkeeping requirements, which may remain unchanged after a final rule is issued;
• If the proposed rule is finalized, employers should exercise caution and consult with counsel before ending their race and sex data collection practices.

Buchanan’s Labor and Employment team is available to assist clients in evaluating their workforce demographic data collection practices, ensuring compliance with current legal standards and avoiding practices that could be challenged under federal guidance or result in litigation. The landscape remains complex and rapidly evolving. Employers are encouraged to stay informed and seek Buchanan’s professionals to navigate these developments effectively.