Companies May Soon Be Able to Stop Reporting Employees’ Race

The U.S. Equal Employment Opportunity Commission (EEOC) has voted 2-1 to propose rescinding the long-standing requirement that employers with 100 or more workers report the racial and sexual demographics of their workforce. The agency argues the mandate is not legally required, may violate constitutional narrow tailoring standards, and could encourage race-based hiring to meet diversity targets. The change would save the EEOC millions annually and reduce employer burdens. However, critics note that the data is useful for discrimination investigations, including challenges to DEI practices. The rule's effect depends on whether employers continue collecting the data voluntarily, state-level requirements like California's, and whether a future Democratic administration reinstates the mandate. The article highlights trade-offs between reducing government overreach and preserving tools to enforce anti-discrimination laws.