EEO-1 reporting may end, but employers could keep collecting workforce data

The U.S. Equal Employment Opportunity Commission has proposed ending EEO reporting requirements, including the EEO-1 report. The proposal has not been finalized, and employers may continue gathering workforce demographic data even if federal filings are no longer required.

EEO-1 is one of six reports covered by the proposal. It requires demographic data from employers with at least 100 employees and certain federal contractors with at least 50. The EEOC has described the reporting process as burdensome and argued that it can encourage discrimination and racial stereotyping. The public comment period closed in late August, but the agency has not said when it expects to issue a final rule.

The proposal would not remove all reporting obligations. Reed Smith partner Mark Goldstein told HR Dive that California, Colorado, Illinois and Massachusetts, as well as New York City, have similar requirements. Employers operating in those jurisdictions may therefore need to continue reporting, and businesses with operations across multiple states could still face a patchwork of rules.

HR and legal sources also expect some employers to retain demographic records for other reasons, including assessing whether talent initiatives are effective and preparing to defend against litigation. The Society for Human Resource Management urged the EEOC not to end the mandate without replacing it or providing guidance on what information employers should collect, how long to keep it, who should access it and how it may be used.

Catalyst vice president Laurie Henneborn said the value of workforce data extends beyond regulatory compliance. Tracking hiring, pay and promotion patterns can help employers identify barriers and evaluate whether talent systems are working as intended. Without measurement, she said, emerging problems may be harder to spot.

Continuing to collect the information requires care. Saul Ewing counsel Jennifer Robins said employers should make clear that providing demographic information is voluntary and keep it separate from personnel decisions. Goldstein advised limiting access to those with a business need and ensuring the data is not used to discriminate.

For now, employers should not make major changes while the proposal remains under consideration, Robins said. If the EEOC finalizes the rescission, Goldstein expects more state and local jurisdictions may consider their own demographic reporting rules. Henneborn said organizations can use data to identify patterns, listen to employees and make improvements, regardless of changes to federal requirements.

Sources: HR Dive.