Navigating Changes to Demographic Data Collection Under New Executive Orders

With new executive orders on DEI restricting federal efforts in this area, many employers are reassessing their approach to collecting demographic data on race, gender, and ethnicity. While government contractors may see shifts in requirements, other private employers must still approach demographic data collection strategically and legally.

The Impact of the Executive Orders

One of the new executive orders revokes some affirmative action policies for federal contractors and eliminates certain diversity-related positions within the federal government. While this changes data collection mandates for federal agencies, it does not prohibit private employers from gathering demographic information. However, organizations should be mindful of how they use this data.

“Most employers are still required to file the annual EEO-1 Report, which includes race and gender data. The key takeaway is that data collection itself remains legal; it is how employers use it that determines compliance,” employment attorney Christy Kiely explained during a recent SHRM webinar.

Employers that collect demographic data should ensure that it is used for lawful, nondiscriminatory purposes, such as:

• EEO compliance: Companies must continue filing EEO-1 reports, which require race and gender data for employees.
• Identifying disparities: Organizations can analyze hiring and promotion patterns to address inequities.
• Workforce planning: Demographic data can help companies build more effective talent pipelines.

“Employers need to think about transparency when collecting demographic data. Clearly communicating why this data is collected and how it will be used is essential to maintaining trust and compliance,” SHRM Chief Data & Analytics Officer Alex Alonso, Ph.D., SHRM-SCP, said during the webinar.

Best Practices for Employers Moving Forward

“HR professionals are on the front lines of these policy shifts, ensuring compliance while maintaining inclusive workplace cultures. The challenge is not just legal, but also about fostering environments where all employees feel valued and respected,” said Anuradha Hebbar, J.D., president of SHRM CEO Action for Inclusion & Diversity, during the webinar.

To navigate these complexities effectively, HR leaders can follow these key steps to balance transparency, legal compliance, and inclusive workplace practices.

1. Ensure Transparency

• Inform employees and applicants why data is being collected and how it will be used.
• Assure them that responses are voluntary and confidential.

2. Use Data for Compliance and Inclusion

• Monitor hiring and pay equity without implementing race- or gender-based quotas.
• Ensure demographic data informs inclusion efforts, not preferential treatment.

3. Stay Legally Compliant

• Work with legal counsel to align practices with federal and state requirements.
• Reassess whether your organization should continue collecting applicant data, particularly if it is not being used for compliance purposes.

Takeaways for Business Leaders

While government regulations around demographic data collection are shifting, private employers retain the right to collect and analyze this data responsibly. Employers should focus on transparency, compliance, and legal best practices to ensure their workforce remains fair and inclusive in the evolving regulatory environment.

“When in doubt, align your data collection efforts with clear business needs and compliance objectives. Ensuring fairness without favoritism is key,” SHRM Linkage CEO Tamla Oates-Forney said during the webinar.

View more FAQs related to these executive orders and get additional resources for maintaining compliance with federal regulations at the SHRM Executive Order Impact Zone.