Companies May Soon Be Able to Stop Reporting Employees’ Race

The Equal Employment Opportunity Commission (EEOC) has voted 2-1 to propose rescinding the requirement that employers with at least 100 workers annually report the racial and sexual makeup of their workforces. The rule, not explicitly mandated by law, is justified by the EEOC on constitutional grounds, arguing that indiscriminate collection of racial data may not be narrowly tailored. Critics note the change could reduce pressure on companies to meet diversity quotas and lower compliance costs, but may also hinder discrimination investigations, including those targeting DEI practices. The rule's effect depends on whether employers continue collecting data voluntarily and on future administrations' policies. State-level requirements, such as California's, remain unaffected. The article highlights tradeoffs between reducing government overreach and maintaining data for enforcement.