EEOC moves to scrap employer reporting of workforce race and sex data

EEO-1 report, marking a significant shift in workplace compliance and diversity reporting. If finalised, the proposal would also eliminate similar reporting obligations for labour unions, public schools and government agencies. Employers would, however, still be required to retain workforce records for discrimination investigations.

The EEOC said removing the reporting requirement could save employers an estimated US$275 million annually in compliance costs. EEOC Chair Andrea Lucas argued that mandatory demographic reporting is inconsistent with a “colour-blind” approach to employment practices, while Democratic Commissioner Kalpana Kotagal and civil rights advocates warned that the move could weaken employers’ ability to demonstrate equitable workforce practices and limit regulators’ oversight of workplace discrimination.

The proposal will undergo a public consultation process before any final rule is adopted, making its outcome closely watched by employers as they assess future workforce reporting, compliance and DEI governance strategies.