EEOC votes to end employer DEI reporting mandate

The Equal Employment Opportunity Commission voted Tuesday to advance a Trump administration proposal to eliminate a decades-old requirement that large employers report workforce demographic data, reportedly arguing the mandate is unnecessary, legally questionable, and expensive.

The move is the latest step in President Donald Trump's effort to roll back diversity, equity, and inclusion policies across the federal government and corporate America.

In a 2-1 vote, the EEOC approved publishing a proposed rule to rescind the reporting requirement and open it for public comment, according to Axios. The proposal is not yet in effect.

The reporting mandate, in place for approximately 60 years, requires employers with 100 or more workers to submit summary data on employees' race, sex, and ethnicity. The EEOC has used the information to publish aggregate workforce statistics and support enforcement of federal antidiscrimination laws.

The commission, however, said Tuesday that Title VII of the Civil Rights Act does not require the agency to collect the data.

In announcing the proposal, the EEOC said, "EEO data reports are inconsistent with equal employment opportunity law, may raise constitutional concerns, and collect data that is not narrowly tailored or necessary to enforce antidiscrimination statutes."

The agency also emphasized the financial burden of the reporting system, estimating that more than 2 million employers file the reports each year at a combined cost of about $275 million, or roughly $135 per employer. The EEOC said it spends nearly $4 million annually to administer the program.

The proposal follows a plan first introduced in May to formally rescind the reporting requirement.

Supporters of the change argue the mandate places unnecessary compliance costs on employers while requiring businesses to categorize workers by race and sex. The proposal aligns with the Trump administration's broader effort to scale back DEI initiatives and promote what it describes as equal treatment under the law.

Critics say the demographic reports have long served as a tool for tracking workforce trends and supporting discrimination cases.

Laurie Henneborn, vice president of research, insights, and solutions at Catalyst, defended the requirement.

"For decades, workforce data has helped organizations identify systemic barriers that can stall the advancement of women, particularly women from historically underrepresented groups," Henneborn told Axios.

The proposed rule will now be published for public comment before the EEOC decides whether to finalize the change.