Since 1966, employers, labor organizations, educational institutions and government entities have been required to submit workforce demographic information to the Equal Employment Opportunity Commission (“EEOC”) through various EEO data reports. These reports have served as a cornerstone of the EEOC’s efforts to monitor employment trends and identify potential discrimination, but this longstanding framework may soon change.
The Proposed Rule – Removal of Reporting Requirements
On July 21, 2026, the EEOC voted to issue a Notice of Proposed Rulemaking (“NPRM”) that would eliminate the agency’s demographic reporting requirements (“Proposed Rule”). If finalized, the Proposed Rule would rescind the entire EEO reporting framework, including EEO-1 (applicable to covered private employers and certain federal contractors), EEO-2 (applicable to certain joint labor-management committees), EEO-3 (applicable to labor organizations), EEO-4 (applicable to state and local government employers), EEO-5 (applicable to certain school systems) and EEO-6 (applicable to higher education institutions) reporting requirements, as well as related recordkeeping obligations.
Part of a Broader EEOC Ideology Shift
The Proposed Rule reflects a broader shift in how the current EEOC majority views discrimination. For decades, data collected through the EEO reports has been used purportedly to evaluate employment trends, identify workplace barriers and assist both employers and the EEOC in detecting potential discrimination. The current EEOC majority, however, now questions both the necessity and legality of requiring employers to categorize employees by their demographic characteristics.
EEOC Chair Andrea Lucas stated that the EEO data collection framework “stands in direct tension with Title VII’s requirement that employment practices be colorblind.” The NPRM further argues that the reports may raise constitutional concerns and are not necessary to enforce federal anti-discrimination laws. Moreover, the EEOC explains that the Proposed Rule would cut costs for both employers and the EEOC, as employers collectively spend approximately $275 million annually complying with EEOC reporting requirements, while the EEOC incurs millions in additional administrative costs to collect and maintain the data. These recent EEOC positions are in stark contrast to the agency’s position less than ten years ago when it sought to expand EEO data reporting by controversially requiring employers to disclose pay data.
Not Final Yet – EEOC Is Collecting Public Feedback
Importantly, the Proposed Rule is not yet final. The Proposed Rule is subject to a 30-day public comment period (scheduled to end on August 24, 2026), during which employers, industry groups, labor organizations and other stakeholders may submit comments regarding the proposal. The EEOC also held a public hearing on August 11, 2026, during which it heard testimony from civil rights groups who opposed EEOC’s effort to eliminate the collection of workplace demographic data, along with a handful of speakers who supported the Proposed Rule. For now, existing reporting requirements remain in effect.
Practical Takeaways
If the Proposed Rule is finalized and ultimately survives legal challenges, covered entities would no longer be required to submit EEO data reports to the EEOC. It is possible that workforce demographic data collection requirements could be reinstated by a future version of the EEOC.
Additionally, several states, such as California, Illinois and Massachusetts, have implemented reporting requirements that operate independently of federal law. Colorado is set to join this group in 2027. Employers in these states should understand that their demographic data collection and reporting obligations will continue regardless of whether the Proposed Rule is finalized.
For additional information or assistance regarding this topic, please contact:
- Jon Bumgarner at (317) 977-1474 or jbumgarner@hallrender.com;
- Becca Foerder at (317) 429-3683 or bfoerder@hallrender.com; or
- Your primary Hall Render contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.
