EEOC proposes to eliminate EEO-1 reporting: What employers need to know

The U.S. Equal Employment Opportunity Commission (the Commission or the EEOC) is on the brink of ending its mandatory annual collection of workplace demographic data. On July 21, 2026, the EEOC voted in favor of publishing a notice of proposed rulemaking to eliminate long-standing employer demographic reporting requirements, moving closer to the rescission of disclosure mandates that have existed for decades. The proposed rule marks a major shift in how employers would be required to manage workforce demographic reporting under federal law that, if finalized, would differ significantly from state and local laws that require the collection of similar demographic information.

The EEO-1 report and its requirements 

Since 1966, the EEO-1 report has been a central feature of federal workplace reporting obligations. Covered private employers with 100 or more employees, and federal contractors with at least 50 employees and at least $50,000 in government contracts, have been required to submit annual workforce demographic data to the EEOC, broken down by establishment, job category, sex, and race or ethnicity. Historically, the EEOC has used that data to inform enforcement priorities, assess employment practices, and identify potential discrimination under Title VII. Employers have also used their EEO-1 reports as a resource to evaluate their own workforce composition. 

In addition to the EEO-1 report, other reporting is required for joint labor-management apprenticeship programs (the EEO-2), unions (the EEO-3), state and local governments (EEO-4), public school systems (EEO-5), and institutions of higher education (EEO-6). The requirements to submit these reports would be repealed under the EEOC’s proposed rule, although the Commission has not required submission of the EEO-2 and EEO-6 since 1981 and 1993, respectively.

Why the EEOC is acting now

As we predicted in a prior Insight, federal regulatory agendas have changed considerably under the new administration, and the EEOC’s is no exception. In a 2025 press release, the EEOC made clear that employers may not use information about employees’ race, ethnicity, or sex — including demographic data collected and reported through an EEO-1 report — to facilitate unlawful employment discrimination. In connection with the newly proposed rule, the Commission takes the next step, taking the position that EEO data reports are inconsistent with ensuring equal employment opportunities, may be unconstitutional, collect data that is not narrowly tailored or necessary to enforce antidiscrimination statutes, and impose an undue burden on employers. EEOC Chairwoman Andrea Lucas further stated that the “EEO Data Reports stand in direct tension with Title VII’s requirement that employment practices be colorblind” and that the collection of such data absent any specific allegation of discrimination “not only risks hindering effective enforcement of equal employment laws but also raises constitutional concerns.” These sentiments are consistent with the EEOC’s messages and President Trump’s executive orders. 

The federal rulemaking process: What comes next? 

The proposed rule is not yet final, and several steps remain before it takes effect. As of now, the proposed rule must go through a public notice-and-comment process before it is finalized. The public comment period for the EEOC’s proposal ends on August 24, 2026. The Commission will hold a public hearing about the proposal on August 11, 2026. The agency is expected to publish a final notice that will address the public input received.

If the EEOC publishes a final rule, Congress could act under the Congressional Review Act to overturn the EEOC’s action; however, even if the House and Senate pass a resolution of disapproval, it would not be effective unless signed by the president. 

Impact on state and local reporting obligations 

Employers should remain cognizant of state-level reporting obligations and should not assume that the rescission of federal EEO reporting eliminates all workforce demographic reporting obligations, as state and local requirements may continue to require the collection, maintenance, or submission of similar or even more extensive data. For instance, and as we discussed in a prior Insight, New York City recently passed a law that will require employers that employ 200 or more employees in New York City to annually report pay and demographic data for their employees, and California currently requires covered private employers to submit annual pay data reports containing workforce demographic and pay information. Illinois requires certain corporations to include EEO-1-style demographic data in annual corporate reports, and Colorado will require covered private employers to submit EEO-1 demographic data through state periodic reports beginning in 2027 (and, by the explicit terms of the law, that requirement will remain in place “even if the federal government repeals or discontinues the federal requirement to submit the EEO-1 data”). 

It is far less than clear that the EEOC would sanction such state and local efforts, and it remains to be seen whether it will challenge the viability of such requirements and assert that they are prohibited under — or that employers’ compliance with such laws violate — Title VII, the Constitution, or other applicable law. Employers should monitor applicable jurisdictions and preserve compliant reporting processes until those obligations are challenged, changed, or withdrawn.

Next steps for employers 

While the proposed rule undergoes the formal rulemaking process, employers should take note of the following: 

• Federal reporting obligations may end. If finalized, the rule would eliminate federal EEO-1 reporting and related recordkeeping requirements for covered private employers.
• Uncertainty around the 2025 EEO-1 cycle remains. The EEOC has not yet opened submissions for the 2025 reporting cycle. It remains unclear whether the rule would affect the 2025 EEO-1 cycle or instead apply beginning with the 2026 cycle. Employers should remain prepared to file until the EEOC provides official guidance.
• Demographic data collection should be purposeful, voluntary, and safeguarded. Even if federal reporting ends, employers may be required or have other practical reasons to collect demographic data, including but not limited to compliance with state or local data collection laws, internal self-audits, and defense in litigations. In that event, employers should ensure that such data is used only for reporting or privileged self-auditing, not to inform employment decisions, and limit access to those with a proper need.

Taken together, the EEOC’s proposal may reduce federal reporting obligations, but employers should continue to prepare for potential filings, assess how and why they collect demographic data, and track state and local requirements that remain in force regardless of federal action.

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For questions or concerns regarding any of the issues raised in this alert, please contact a member of the HSF Kramer Employment Law Department.