In 1966, the Equal Employment Opportunity Commission (“EEOC”) adopted the annual EEO-1 reporting requirement (the first of six reporting requirements), which requires covered employers are required to annually report race and sex demographic data about their employees on EEO-1 reports. On July 23, 2026, EEOC issued a proposed rule to rescind those requirements for the filing of all EEO reports and remove data recordkeeping obligations for employers. Comments on the proposal were due by August 24, 2026.
In its notice of proposed rulemaking, the EEOC determined that EEO reports are inconsistent with equal employment opportunity law and potentially unconstitutional. The EEOC further found that the data collected is not narrowly tailored, is unnecessary to enforce anti-discrimination laws. The EEOC noted that, “[u]nder Title VII, the EEOC is not required to impose these reporting obligations and may eliminate them when they are inconsistent with the law, not useful, or counter to enforcement priorities.” The EEOC concluded that “any limited value of the reports is outweighed by the significant burdens they impose on employers and on the Commission — particularly because employers must submit them annually without any specific indication of a potential violation.”
Until the EEOC issues a final rule, covered employers should continue maintaining employee self-identification processes and collecting the demographic data needed for EEO filings, as the requirements remain in effect. Notably, even if annual EEO reporting requirement is eliminated, the EEOC would still be able to request demographic records from employers if justified, so employers should continue to maintain employee information.
We will continue to monitor developments regarding the proposed rule and will update you should the final rule be issued. Should you have any questions, please contact Ali Law Group.
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