The EEOC just sent a game-changing proposal to the White House to end the EEO-1 reporting requirement altogether, according to a May 14 submission to the Office of Information and Regulatory Affairs (OIRA). This news comes as employers are waiting for the annual EEO-1 reporting portal to open, and we’ll now wait to see if it will open at all for this reporting year. Under the longstanding requirement, large employers must annually submit employee demographic data broken out by job category to the Equal Employment Opportunity Commission, as well as by sex and race/ethnicity. The EEOC’s proposal to eliminate the requirement will not be made public until it’s reviewed by OIRA, but the move signals a potentially big change for covered employers. While it’s unclear if or when the proposal will be finalized, and whether it will impact this year’s reporting window, here’s what we know so far – and five steps you should consider taking now.
What Happened?
Private employers with 100 or more employees and certain federal contractors with at least 50 must submit workforce data each year to the federal government during a designated reporting window. The mandatory annual report includes demographic data from the prior year about your employees broken out by job category, as well as sex and race/ethnicity.
We’ve been expecting the EEOC to announce the reporting window and open the portal any day now. Last year the portal opened on May 20, and employers had about a month to complete the process. But this year’s process could be impacted by the agency’s new direction.
The EEO-1 report is the most common reporting obligation the EEOC wants to eliminate, but the proposal also seeks to scrap reporting and information collection obligations related to:
- Forms EEO-2 through EEO-5
- Title VII of Civil Rights Act
- Americans with Disabilities Act (ADA)
- Genetic Information Nondiscrimination Act (GINA)
- Pregnant Workers Fairness Act (PWFA)
We expect to have more details after OIRA completes its review.
What Would This Rollback Mean for Covered Employers?
The annual EEO-1 reporting process is a time-consuming obligation for employers. Filers need to:
- Pick a payroll end date between October 1 and December 31 of the prior year as a “workforce snapshot period”
- Ensure job titles are categorized correctly and consistently
- Give employees an opportunity to self-identify their sex and race/ethnicity – and provide a statement about the voluntary nature of the inquiry
- Designate an employee as the “account holder” who will file the EEO-1 report through the EEO-1 Component 1 Online Filing System (OFS)
- File on time during a brief window
Notably, this reporting obligation also carries the potential for disclosure risks. Filers should be aware of a recent 9th Circuit decision that required disclosure of certain EEO-1 reports from federal contractors as part of a Freedom of Information Act request. This means employers that previously considered EEO-1 data confidential may need to revisit that assumption.
Eliminating EEO-1 reporting requirements would free up time and reduce exposure risks for employers, but state obligations would not change. Even if the EEO-1 is scrapped altogether, you should check for applicable state demographic and pay data reporting laws and consult with your counsel to ensure continuing compliance.
Should You Still Prepare for This Year’s Reporting Window?
Yes. Although the EEOC is seeking to end EEO-1 reporting requirements, the proposal is in the very early stages of the process and there are a few more steps before things are finalized.
- OIRA must review the plan before a proposal can be published in the Federal Register.
- Then, the proposal will be open for public comment.
- The government will need to respond to comments and potentially revise the rule before it is finalized.
This process could take months, which means that the EEOC may still open the portal for 2025 reporting in the coming weeks or months. While the agency is not obligated to open the portal by a certain date each year, employers should be ready to comply unless and until you hear otherwise.
What Steps Should Employers Be Taking Now?
Although the future is unclear for EEO-1 reporting, you should consider taking the following five steps now to be ready in case the EEOC opens the portal for 2025 data:
1. Choose a workforce snapshot period: You should select a payroll end date between October 1, 2025, and December 31, 2025. The report must include all employees as of the pay period you choose.
2. Categorize your workforce: Ensure that job titles are categorized correctly and consistently, as each job title should only be associated with a single EEO-1 job category.
3. Let your employees choose: Be sure to give your employees an opportunity to self-identify their sex and race/ethnicity, and provide a statement about the voluntary nature of the inquiry. As with last year, if the data is collected, only binary options for reporting sex will be available on the EEO-1 reporting form.
4. Choose a point of contact: Designate an employee as the “account holder” who will file the EEO-1 report through the EEO-1 Component 1 Online Filing System (OFS). Note that there are separate instructions for new filers and for those who are changing their point of contact.
5. Track new developments: While we don’t know if or when the portal will open, being prepared and tracking updates will help you stay compliant and ready to timely file your reports if needed.