EEOC Proposes to Eliminate Annual EEO-1 Workforce Demographic Reporting 

The U.S. Equal Employment Opportunity Commission (EEOC) has taken the first step toward eliminating the long-standing requirement for many employers to file annual workforce demographic reports, including the EEO-1 report. While this represents a significant potential change, it is only a proposed rule and is not currently in effect. 

Although this proposal has received considerable attention, no employer reporting requirements have changed at this time. The proposal must complete the federal rulemaking process, including a public comment period and issuance of a final rule, before any changes become effective.

Until then, employers should continue to comply with all current EEO-1 reporting and recordkeeping requirements, as well as any other applicable federal contractor and state reporting obligations. 

As part of our normal compliance support process, C2 Essentials prepares draft EEO-1 reports using available payroll and workforce data and provides to applicable clients for review and confirmation prior to submission.

At this time, the EEOC has not opened the 2026 EEO-1 reporting period. If the EEOC reporting cycle proceeds under the current requirements, C2 Essentials will assist with preparation of the applicable reports and will communicate next steps to impacted clients. 

What Employers Should Know 

The EEO-1 Report is an annual workforce demographic report that summarizes the number of employees by job category, race/ethnicity, and sex. The report contains aggregated workforce data rather than individual employee information and has historically been used by the EEOC to support enforcement of federal equal employment opportunity laws. 

Private-sector employers that have 100 or more employees during the selected workforce snapshot period are generally required to file an EEO-1 report. Federal contractors and first-tier subcontractors generally must file an EEO-1 report if they have 50 or more employees, and hold at least one qualifying federal contract, subcontract, or purchase order meeting the applicable monetary threshold (currently $50,000 or more). 

If finalized, the proposal would remove the federal requirement for covered employers to annually report workforce demographic information by race and sex. According to the EEOC, the proposed change is intended to reduce the administrative burden associated with annual demographic reporting and reflects the agency's current enforcement priorities.  

No Immediate Changes to Employer Equal Employment Obligations 

While the EEOC's proposal could ultimately reduce one federal reporting requirement, it should not be interpreted as a broader reduction in equal employment opportunity or federal contractor compliance obligations. 

Employers must continue to make employment decisions without regard to protected characteristics and comply with all applicable anti-discrimination laws. Employers should continue following existing federal equal employment opportunity laws, including:  

• Title VII of the Civil Rights Act - prohibits employment discrimination based on race, color, religion, sex, and national origin. Federal contractors and other covered employers must continue maintaining nondiscriminatory employment practices and complying with applicable equal employment opportunity requirements, regardless of any future changes to EEO reporting obligations. 

For federal government contractors, this proposal does not eliminate other federal compliance obligations that may still apply. Employers should continue to comply with all existing contractual and statutory requirements, including: 

• VETS-4212 reporting: Federal contractors and subcontractors with a federal contract or subcontract of $150,000 or more (based on the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) threshold) must continue submitting annual VETS-4212 reports, which provide information regarding the employment of protected veterans within their workforce by September 30 each year.  As part of our normal compliance support process, C2 Essentials prepares draft VETS-4212 reports using available payroll and workforce data and provides them to applicable clients for review and confirmation prior to submission 

  
  

• Federal and state recordkeeping requirements related to employment decisions - Employers must continue maintaining appropriate employment records, including documentation related to hiring, promotions, compensation decisions, terminations, accommodations, and other employment actions, in accordance with applicable federal and state requirements. These records remain important for demonstrating compliance with equal employment opportunity obligations.  

  
  

Official Resources 

• EEOC News Release: https://www.eeoc.gov/newsroom/eeoc-proposes-rescission-annual-race-and-sex-reporting-requirements 

  
  

• EEOC Notice of Proposed Rulemaking (NPRM): https://www.eeoc.gov