EEOC Moves One Step Closer to Eliminating EEO-1 Reporting (US)

On May 21, 2026, we predicted that employers’ longstanding obligations to maintain and report workforce demographic data, as required by the Equal Employment Opportunity Commission (“EEOC”), may be eliminated. That prediction has moved one step closer to becoming reality.

For nearly sixty years, covered employers and certain federal contractors have been required to maintain records and submit annual workforce demographic reports reflecting the gender, racial, and ethnic makeup of their workforces to the EEOC, including employers that have never faced a discrimination charge or a Title VII investigation.

A general rationale for EEO-1 reporting (as well as EEO-2, EEO-3, EEO-4, and EEO-5 reporting, which impose similar requirements on unions, governmental entities, and educational institutions) is that maintaining and disclosing this data aids in the investigation of employment discrimination and provides critical insight into employment trends. The collection of demographic workforce data also has informed workforce analytics, compliance efforts, and, for many employers, diversity, equity and inclusion (DEI) initiatives. Consistent with the Trump Administration’s stated emphasis on merit-based employment practices, federal agencies have increasingly scrutinized DEI-related initiatives in employment (see, e.g., here), and more recently, demographic reporting requirements.

In May 2026, the EEOC announced that there was a proposal in the works that would rescind the regulations that mandate and structure workforce demographic recordkeeping and reporting, which, if finalized, would eliminate EEO reporting and related reporting requirements. On July 21, after internal review, the EEOC’s Commissioners voted 2-1 along party lines in favor of the proposal. Among other rationales, the proposed rescission of the requirement asserts that the data collection is not necessary to enforce anti-discrimination laws and that any potential benefits reaped from the data are outweighed by the compliance-related burdens on the EEOC and on covered employers.

For now, the proposal remains just that, which means that it will undergo a notice and comment period during which interested parties can raise potential concerns with the proposal and request clarification from the EEOC on the proposal’s scope and implications. Therefore, it is possible the proposal may change or even be rescinded entirely before it takes any legitimate effect. And notably, the proposal would not limit the EEOC’s authority to seek workforce demographic information or personnel records in connection with charges of discrimination and other enforcement activity. But if a final rule is adopted substantially as proposed and becomes effective, the result would be that employers would no longer be required to submit annual EEO demographic reports to the federal government and no longer subject to the report-specific recordkeeping requirements proposed for rescission.

This does not mean that employers can completely disregard the data that they’ve been required to report for so long. First, the EEOC Commissioners’ vote does not immediately eliminate any reporting obligation. As noted above, the proposal must proceed through the notice-and-comment process before a final rule can be issued. Until that occurs, covered employers should assume that current EEO-1 obligations remain in effect and continue monitoring EEOC guidance concerning future filing requirements. Second, even if EEO-1 reporting is eliminated, employers may still be asked to report demographic information on an ad hoc basis, including if they are accused of employment discrimination. This means that the same agency that is interested in rescinding EEO-1 reporting requirements may ultimately seek the same information that EEO-1 reporting is designed to provide, but in narrower contexts and only as needed. Further, employers should continue to comply with any state and local data maintenance and reporting laws, which will be unaffected by EEOC action.

The EEOC’s proposal was published in the Federal Register on July 23, 2026, beginning the thirty-day notice and comment period. The EEOC also has scheduled a public hearing for August 11, 2026 to receive testimony relevant to the proposal. Following the conclusion of the comment period and hearing process, it will then determine whether to issue a final rule and, if so, in what form. If adopted substantially as proposed, employers that have participated in EEO-1 reporting for decades may ultimately see those annual reporting obligations eliminated.

In the meantime, the key takeaways for employers are:

• Continue collecting demographic data and maintaining EEO-1 compliance processes unless and until a final rule becomes effective.
• Monitor the notice-and-comment process and any resulting litigation.
• Remember that as presently proposed, the EEOC would retain authority to seek workforce demographic information in connection with investigations and enforcement actions.
• Review state and local reporting obligations, which would not be affected by the federal proposal.