July 23, 2026
The EEOC has voted to begin dismantling the requirement .
The U.S. Equal Employment Opportunity Commission (EEOC) has voted to begin rescinding a decades-old requirement that large employers submit annual workforce demographic data by race and sex. Critics of diversity, equity, and inclusion (DEI) applaud the move, arguing that it will reduce regulatory burdens, while critics warn that it could make workplace discrimination harder to detect.
The Current EEOC Reporting Requirement
In a 2-1 vote on July 21, the Republican-led commission approved a proposal to eliminate the EEO-1 Component 1 reporting requirement, which has been in place since 1966. The rule currently requires private employers with at least 100 employees and certain federal contractors with at least 50 employees to report workforce demographics across various job categories, reports The Associated Press. The proposal will now undergo a public comment period before a final rule can be adopted.
EEOC Chair Andrea Lucas, a vocal critic of DEI, argued that the reporting requirement conflicts with the agency’s mission of enforcing equal treatment under the law.
“It may promote racial stereotyping at work, and it may encourage employers to engage in discrimination,” Lucas said ahead of the vote.
Lucas has also maintained that categorizing employees by race and sex encourages employers to make employment decisions based on protected characteristics rather than merit. The EEOC estimates that eliminating the reporting requirement would save employers roughly $275 million annually in compliance costs, Reuters reports.
Another Way To Eliminate DEI Efforts
Civil rights organizations and Democratic Commissioner Kalpana Kotagal strongly opposed the proposal, arguing that EEO-1 data has long served as one of the federal government’s most important tools for identifying patterns of workplace discrimination and tracking employment opportunities for women and racial minorities. Kotagal also warned that ending the reporting requirement would weaken the agency’s ability to enforce anti-discrimination laws and reduce transparency around workforce diversity. Civil rights advocates similarly contend that the data helps employers evaluate their own hiring and promotion practices while providing researchers and the public with a clearer picture of workplace equity.
The proposal marks another significant shift in the Trump administration’s effort to roll back DEI initiatives. Since taking office, administration officials have increased scrutiny of corporate DEI programs, with the EEOC under Lucas investigating companies and employers over what it describes as “DEI-related discrimination.”
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