EEOC Proposal Puts Future of EEO-1 Reporting in Question

The U.S. Equal Employment Opportunity Commission (EEOC) has taken the first step toward eliminating one of employers’ longest-standing workforce reporting obligations: the annual EEO-1 report.

The agency on May 14 submitted a proposal to the White House Office of Management and Budget (OMB) seeking approval to rescind the EEO-1 and several related demographic reporting requirements, including EEO-2, EEO-3, EEO-4, and EEO-5 reports. If finalized, the move would end the federal government’s decades-long practice of collecting workforce demographic data on race, ethnicity, and sex from covered employers. 

The EEO-1 Component 1 report currently requires private employers with 100 or more employees to submit a breakdown of workers by job category, race, ethnicity, and sex. The data has long been used by the EEOC to identify potential patterns of discrimination and by employers to conduct their own pay equity and representation analyses.

HR Q&A: What is the EEO-1 Component 1 Data Report?

A Significant Policy Shift

The proposal aligns with the Trump administration’s broader effort to scale back DEI initiatives and reduce federal collection of demographic information. Earlier this year, the EEOC rescinded its workplace harassment guidance and made other procedural changes that signaled a narrower enforcement approach. 

Eliminating EEO-1 reporting would represent a major departure from prior administrations, including the first Trump administration, which sought to halt pay data reporting but left the underlying demographic report intact.

The proposal would also eliminate reporting obligations for labor unions, public school districts, and state and local governments.

Employers Should Continue Preparing

For now, however, employers should assume that EEO-1 reporting remains in effect.

The proposal must first be reviewed by OMB and then published in the Federal Register for public comment before any final rule can be adopted. That process typically takes months, and legal challenges are possible.

As a result, many compliance experts are advising employers to continue preparing their demographic data as if the 2026 filing will proceed as usual. Covered employers generally must report data from a workforce snapshot taken during the final quarter of the previous year. 

Why the Data Still Matters

Even if the federal reporting requirement is eventually eliminated, many organizations are likely to continue collecting demographic data for internal purposes.

Employers use EEO-1 data to evaluate hiring, promotion, and compensation trends, support affirmative action and pay equity analyses, and respond to shareholder or board requests for diversity metrics.

In addition, state laws and private litigation may continue to require employers to maintain robust workforce data. 

Sample Checklist: EEO-1 Reporting Checklist

What HR Should Do Now

HR and compliance leaders should continue gathering and validating demographic data, monitor EEOC and OMB developments, and consult counsel before changing any reporting practices.

The proposal introduces uncertainty, but it does not change employers’ obligations today. Until the EEOC formally rescinds the rule, the safest course is to prepare as though the next EEO-1 filing deadline will arrive as scheduled.