On July 22, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) circulated a proposed rule to formally proceed with rescinding workforce demographic data reporting requirements (“EEO reports”).
While this move by the EEOC is not surprising, it represents a major break with the agency’s history: the creation of workforce demographic data reporting requirements was one of the first actions the EEOC took after it began operations.
Many employers are likely familiar with the annual data collection mandated by the EEOC. The original of these – EEO-1 reports – requires all private sector employers with 100 or more employees and federal contractors with 50 or more employees (if they meet certain fiscal criteria) to submit workforce demographic data, specifying job category, sex and race or ethnicity. Such reports have been mandatory since 1966.
The proposed rule will rescind the requirement to file EEO-1, as well as EEO-2, EEO-3, EEO-4, EEO-5, and EEO-6 reports. In its reasons explaining the proposed elimination of a 60-year old process of information gathering, the EEOC makes some big claims, going as far as to assert that such data collection might be unconstitutional.
The Proposed Rule, In Short
To quote the Proposed Rule, the EEOC “has concluded that the collections are overly burdensome, offer insufficient utility, and may be misused.” According to the EEOC, some 110,000 employers, 6,000 labor organizations, and more than 17,000 public entities (including state and local governments and public school systems) would benefit from the cost-savings associated with a reduced regulatory burden, valued at an estimated aggregate total nearing $275 million in annual savings for these reporting entities. Additionally, the EEOC estimates that administering EEO-1 and other EEO reports costs the agency $5 million per year.
The rule’s explanation section asserts that generic data collection is not helpful to effective enforcement of the anti-discrimination laws under the EEOC’s jurisdiction. To the contrary, the EEOC has taken the position that EEO reports may actually encourage employment discrimination “against employees who are not considered ‘minorities,’ may promote racial stereotyping, and may encourage employers to engaged in discrimination to avoid potential EEOC enforcement actions or to address perceived inequitable outcomes.”
The EEOC argues that targeted, narrowly tailored information requests are better suited to investigating charges of discrimination than routine mass collection of demographic information. Moreover, citing the recent Supreme Court decision in Ames v. Ohio Dept. of Youth Services, the EEOC argues that categorizing employees into racial or ethnic categories is “contrary to the Ames principle that Title VII prohibits discrimination against ‘individuals,’ 42 U.S.C. 2000e-2(a)(1), and that the same protections apply regardless of the particular group to which someone belongs.” The EEOC further concludes that reporting race-based classifications may conflict with the U.S. Constitution’s Equal Protection clause.
EEO Requirements Remain – and May Change – in Some Jurisdictions
Even though the EEOC is poised to eliminate this annual data collection, employers operating in certain jurisdictions must be mindful that they may still be subject to employment data reporting requirements, and the list of jurisdictions demanding information is growing.
Currently California, Illinois, and Massachusetts collect employment data from covered employers. Last year, in anticipation of the EEOC eliminating EEO reporting, lawmakers in California and Illinois amended their laws to remove any reliance on federal reporting, even though both states have developed their own distinct data collection requirements. However, Massachusetts law as written expressly relies on EEO-1 reports; unless Commonwealth legislators amend the “Act Relative to Salary Range Transparency”, employers currently subject to that law may have nothing to file on the February 1 deadline.
Meanwhile, pursuant to a law passed late last year, New York City will soon begin requiring covered employers to report employment data.
Likewise, some Colorado employers will also need to file workforce data, starting next year. In June 2026, Colorado enacted HB 26-1207, which requires private employers with at least 100 workers to file reports with the Colorado Secretary of State. Covered employers will be required to submit “EEO-1 Data” in the same form as federal EEO-1 reports in the form that existed on March 1, 2026, starting on or after July 1, 2027. The statute does not specify whether employers must report Colorado-only employees, Colorado establishments, or enterprise-wide workforce data, and provides rolling deadlines. Importantly, the new law explicitly notes that state reporting will be required even if federal EEO-1 reporting is eliminated.
What’s Next?
In light of the EEOC now asserting that its previously required data collection is unconstitutional, state and local laws mandating demographic data reporting may eventually face legal challenges. For now, however, many employers will still need to comply with the growing number of administrative mandates in certain locations.
Meanwhile, the EEOC is collecting comments on its proposed rule. On July 30, the agency announced that a public hearing about the plan to rescind EEO reporting requirements will be held on Tuesday, August 11, 2026, from 10:00 a.m. - 12:00 p.m. Eastern Time. The notice instructs that anyone wishing to attend the meeting and offer comments must submit a written request by Friday August 7.
Requests to speak at the hearing must provide contact information and a written summary of planned remarks. The request must also be submitted with a reference to the identifying Regulatory Information Number (RIN) number 3046-AB37, by any of the following methods:
- Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments.
- Fax: 202-663-4114. Only six or fewer pages will be accepted via FAX transmittal.
- Mail: Raymond Windmiller, Executive Officer, Executive Secretariat, U.S. Equal Employment Opportunity Commission, 131 M Street NE, Washington, DC 20507.
- Hand Delivery/Courier: Raymond Windmiller, Executive Officer, Executive Secretariat, U.S. Equal Employment Opportunity Commission, 131 M Street NE, Washington, DC 20507.
The hearing location is at the EEOC’s offices in Washington, DC. Those selected to speak will be notified by COB August 10. Written comments may be submitted through August 24, 2026.
Staff Attorney Elizabeth A. Ledkovsky contributed to this report.
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