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 100 or more workers report the racial and sexual demographics of their workforce, a mandate dating back to the 1960s. The agency argues the requirement is not statutorily mandated, may violate constitutional narrow tailoring standards, encourages race-based discrimination to meet diversity targets, and imposes financial burdens. The change could reduce DEI pressure but may hinder discrimination investigations, including challenges to DEI practices. Critics note that data may still be collected voluntarily or via subpoenas, and a future Democratic administration could reinstate the rule. State-level requirements, such as California's, remain unaffected.
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