For nearly 60 years, private employers with 100 or more employees and certain federal contractors with more than 50 employees have been required to submit annual workforce demographic data to the Equal Employment Opportunity Commission (EEOC).
Known as the EEO-1 report, this filing requires covered employers to disclose the racial, ethnic, and gender composition of their workforce, broken down by job classification. That longstanding requirement may soon come to an end.
What Is Being Proposed
On May 14, 2026, the EEOC submitted a proposal to the White House Office of Management and Budget that, if approved, would rescind the federal regulations mandating EEO-1 data collection and reporting. The proposal would also eliminate related reporting obligations under EEO-2 through EEO-5, which impose similar requirements on unions, state and local governments, and public schools. The proposed changes would additionally roll back certain data collection and reporting requirements tied to Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Genetic Information Nondiscrimination Act, and the Pregnant Workers Fairness Act. This proposed change is consistent with the current administration’s broader focus on reducing or eliminating diversity, equity, and inclusion initiatives in the workplace.
What This Means for Employers
If implemented, the proposed changes will significantly reduce the administrative burden many private employers face each year. Employers with complex corporate structures or multiple locations often devote substantial time and resources to reconciling workforce data and preparing accurate EEO-1 submissions.
However, this proposal is not yet final. Before any change can take effect, the White House Office of Management and Budget has 90 days to review the proposed rule (which may be extended), after which the proposed rule will be published in the Federal Register to allow the public to review and comment, and then a reasoned explanation must be provided for any change made. This process takes time. For comparison, the administration’s earlier effort to unwind Executive Order 11246 (which imposed affirmative action requirements on federal contractors) has extended well beyond its initial announcement.
What Should Employers Do Now
Importantly, existing EEO-1 obligations remain in effect unless and until the rulemaking process is completed. Covered employers should remain prepared to file their EEO-1 reports if the EEOC opens the reporting portal for the current cycle. As of now, the portal has not yet opened for 2025 reporting, though it typically does so in May or June.
Employers should also keep in mind that even if the federal EEO-1 requirement is ultimately eliminated, state and local demographic reporting laws will remain in effect where applicable. Several states, including California, Illinois, and Massachusetts, have their own workforce data and pay reporting requirements that operate independently of the federal framework. Dismantling your internal data collection systems prematurely could leave you out of compliance with these state-level obligations.
Our Recommendation
The EEOC’s proposal signals a potentially significant shift in federal employment reporting, but it remains just that: a proposal. Employers should monitor future developments in this rulemaking process and consult with experienced employment counsel to ensure compliance with any future EEO-1 filing obligations, as well as ongoing state and local reporting requirements. The Rose Law Firm employment team is here to help you navigate these changes and will continue to provide updates as this process unfolds.
