Recently, the U.S. Equal Employment Opportunity Commission (EEOC) voted to issue a notice of proposed rulemaking that would officially rescind the longstanding EEO-1 demographic reporting requirement for large employers, along with similar reporting requirements for certain joint-labor management committees (the EEO-2), labor organizations (the EEO-3), state and local governments (the EEO-4), elementary and secondary school systems and districts (the EEO-5), and institutions of higher education (the EEO-6). The proposal would also eliminate related recordkeeping requirements.
Employers with 100 or more employees have long been required to submit EEO-1 reports to the EEOC with workforce demographic data, including data by job category, sex and race or ethnicity. This year, however, the EEOC hasn’t taken any steps to collect the EEO-1 reports, which it usually does in May of each year. Instead, on May 14, 2026, the EEOC submitted a filing to the Office of Information and Regulatory Affairs (OIRA) indicating that it intended to rescind the reporting requirements.
On July 21, 2026, the EEOC took the next step in the process, voting in a public agency meeting to issue the proposed rule to rescind the EEO reporting requirements. In the proposed rule, the EEOC determines that the reports:
- Are inconsistent with equal employment opportunity law;
- May raise constitutional concerns; and
- Collect data that is not narrowly tailored or necessary to enforce anti-discrimination statutes.
Further, the EEOC asserts that any potential benefits are outweighed by the burdens on both the reporting employers and the EEOC. According to the EEOC’s press release announcing the proposal, the current data collection requirement imposes costs of almost $275 million on employers every year and almost $4 million on the EEOC to administer the data collection. The EEOC clarified, however, that its ability to request specific, tailored records relevant to a charge investigation remains unchanged.
The proposed rule is now in a 30-day public comment period. Members of the public may comment on the proposed rule through August 25, 2026. Additionally, the EEOC is holding a public hearing on the proposed rule on August 11, 2026. Requests to testify at the hearing should be submitted by August 7, 2026, through www.regulations.gov.
Although it seems increasingly unlikely that the EEOC intends to collect EEO-1 reports this year, employers should consider preparing their reports because current regulations still require them. The proposed rule has not taken effect, and it may be weeks or months before it does so. Even when it’s finalized, it may be subject to legal challenges that could delay its implementation. So, though unlikely, the EEOC could still open its EEO-1 reporting portal and start collecting reports.
In the meantime, employers should continue monitoring the EEO Data Collections website, which currently states that updates regarding the data collection will be posted on the page as they become available. Until the EEOC provides definitive confirmation that it will not collect the EEO-1 reports this year, employers should — out of an abundance of caution — be prepared to file their reports and consult with their legal counsel if they have specific questions.
Lastly, remember that California’s pay data reporting requirements, which are similar to the EEO-1 requirements, are still in effect. California pay data reports were due to the California Civil Rights Department on May 13, 2026.
James W. Ward, J.D., Employment Law Subject Matter Expert/Legal Writer and Editor, CalChamber
CalChamber members can read more about EEO Reporting Requirements in the HR Library. Not a member? Learn how to power your business with a CalChamber membership.
