On Aug. 24, ABC submitted comments in support of the U.S. Equal Employment Opportunity Commission’s July 21 proposed rule to rescind and remove the requirements for the filing of the EEO-1 reports, and the recordkeeping and record preservation requirements related to this report. The EEOC estimates that 110,000 employers will be affected by the proposed deregulatory action.

ABC remains firmly committed to the principles of equal employment opportunity and preventing unlawful discrimination in the workplace. ABC supports policies and programs that meaningfully advance these important objectives while ensuring that employers are not subjected to unnecessary, duplicative or unduly burdensome requirements.

Currently, private employers with 100 or more employees, as well as certain federal contractors with 50 or more employees that meet applicable criteria, are required to submit an annual EEO-1 report to the EEOC. Covered employers are required to collect and report annually on the racial, ethnic and sex demographics of their workforces. Significantly, the reporting requirement applies to covered employers regardless of whether they have ever been accused of violating Title VII or have ever been the subject of a charge of discrimination filed with the EEOC. 

ABC agrees with the EEOC that collecting, maintaining and reporting the EEO-1 data places significant burdens on employers across the board—most of whom have never faced, and may never face, an allegation of discrimination. In its comments, ABC highlighted the significant time and resources employers devote to complying with the EEO-1 reporting requirements, noting that these burdens can be particularly significant for smaller employers. The EEOC found that, “based upon an estimate of 110,000 filers submitting reports, the EEOC estimates these filers (i.e., single-establishment employers and multiestablishment employers) will submit a total of 2,235,938 reports annually resulting in 5,238,467 aggregate burden hours annually.”

ABC also raised concerns regarding the potential disclosure of the confidential EEO-1 report’s information. The release of sensitive EEO-1 information to third parties could have serious and lasting consequences for employers, including reputational harm. Accordingly, ABC supports the EEOC’s decision to rescind this data collection and reduce the potential disclosure and misuse of sensitive employer information.

Finally, while ABC is pleased the EEOC proposes to rescind the EEO-1 reporting requirement, many employers will still be required to report demographic workforce data under existing state and/or local reporting requirements. For example, California, Illinois and Massachusetts currently require employers to report workforce demographic information and/or compensation data. And Colorado recently enacted legislation that is similar to the federal EEO-1 reporting requirement, which will go into effect on July 1, 2027. Employers required to collect demographic information under state and/or local laws should have the ability to tailor their collections and recordkeeping to what is required and not be subject to the threat of EEOC enforcement.

For more information on the proposed changes, and how they will affect reporting requirements, read Littler’s analysis.