Key Takeaways
On May 14, 2026, the EEOC submitted a formal proposal to the White House’s Office of Information and Regulatory Affairs (OIRA) to rescind EEO-1 reporting requirements, along with EEO-2 through EEO-5. It’s important to note that this is a proposal, not a Final Rule. Existing law still requires EEO-1 submission by September 30 annually. Contractors must continue treating that obligation as fully in force. As of today, the EEOC has not opened a 2026 filing portal, announced a deadline, or published a proposed instruction booklet—a notable departure from where the process stood at this point last year. Federal contractors, however, should continue preparing EEO-1 workforce snapshot data and must not discontinue employee demographic data collection, regardless of how this proposal unfolds.
What Happened
On May 14, 2026, the EEOC formally submitted a proposed rule to OIRA—titled Rescission of EEO-1, EEO-2, EEO-3, EEO-4, EEO-5, and Reporting Requirements Under Title VII, the ADA, GINA, and the PWFA—signaling the administration’s intent to end annual employer demographic data reporting requirements that have been in place since 1966.
The proposal covers not just the EEO-1 (private employers and federal contractors) but also reports filed by labor unions, state and local governments, and public school systems. The submission follows reported pressure from White House Budget Director Russell Vought, who raised concerns that EEOC’s reporting practices conflicted with executive orders directing federal agencies to end DEI programs and to recognize only biological sex in federal data collection.
Where the Process Stands
OIRA now has up to 90 days to review the proposal for consistency with presidential priorities and legal requirements. If approved, the EEOC would then need to publish a proposed rule in the Federal Register and open a 60-day public comment period before any final rule could take effect.
This procedural timeline is important to note. Current federal regulation (29 C.F.R. Part 1602) requires employers to file EEO-1 reports by September 30 each year. For the rescission to relieve employers of this year’s obligation, the entire rulemaking process—from the OIRA review and Federal Register publication to the comment period and final rule—would need to be completed well ahead of that deadline.
Note: In 2019, when the first Trump administration attempted to discontinue the Component 2 pay data collection, a federal court compelled the EEOC to proceed. A similar legal challenge to any attempt to bypass full rulemaking procedures this cycle is a real possibility.
Implications for Federal Contractors
Federal contractors should be aware of several contractor-specific dimensions of this development:
- The EO 11246 Connection: The rescission of Executive Order 11246 in early 2025 eliminated the lower 50-employee EEO-1 filing threshold that applied exclusively to federal contractors. Federal contractors are now subject to the same 100-employee threshold as all other private employers. Contractors with 50–99 employees who previously filed are no longer required to do so under this regulatory framework.
- OFCCP Oversight Continues: The EEOC’s proposal does not affect OFCCP’s audit authority under Section 503 of the Rehabilitation Act or VEVRAA. OFCCP recently named Kenneth J. Wolfe as its third director in just over a year, and pending regulatory actions, including proposed changes to Section 503 and VEVRAA self-identification forms, remain active. Contractors should not interpret reduced EEO-1 reporting obligations, if they materialize, as a broader reduction in federal contractor compliance exposure.
- EEOC Enforcement Posture Remains Active: As we reported in March 2026, the EEOC has demonstrated a willingness to use employer workforce composition data— including EEO-1 data already on file—in investigating alleged discriminatory employment practices, including unlawful DEI programs. The existence of historical EEO-1 records does not disappear with rescission of the future reporting requirement.
- Recordkeeping Obligations Remain: Even if EEO-1 reporting is ultimately eliminated, Title VII’s recordkeeping requirements remain in force. The Uniform Guidelines on Employee Selection Procedures (UGESP) require employers to maintain demographic data sufficient to assess disparate impact. Discontinuing demographic data collection at hire would create significant legal exposure.
Actionable Next Steps
Continue EEO-1 data preparation. Employers should proceed as if the 2026 filing will go forward. This means ensuring you have clean employee-level data—EEO-1 job category, race/ethnicity, sex, and establishment information—drawn from a pay period in October, November, or December 2025.
Do not stop collecting workforce demographic data. Regardless of how EEO-1 reporting ultimately resolves, UGESP recordkeeping obligations and potential state law requirements mean demographic data collection should continue uninterrupted.
Audit state-level obligations. States including California, Illinois, and Massachusetts have independent reporting requirements tied to employee demographic data. Massachusetts law currently requires employers to submit their most recent EEO-1 report; if federal reporting is eliminated, that statute may be modified—but until it is, state obligations stand. Other states may move to fill any federal reporting gap.
Monitor the OIRA review docket. The proposal is publicly visible at reginfo.gov (OIRA Action ID 1382263).
What to Watch For
- OIRA Approval & Timing: The 90-day review clock runs through approximately mid-August. Any decision to expedite the review, or to pursue alternative procedural pathways, could accelerate or complicate the timeline.
- A Potential 2026 Filing Announcement: If EEOC intends to proceed with the 2025 data collection cycle, it would need to publish a proposed instruction booklet and open the filing portal. As of today, neither has occurred; by this date last year, both were already in process.
- Litigation: Any attempt to cancel the 2026 filing without completing formal rulemaking would likely face legal challenge, as it did in 2019.
- Congressional Review Act: Should a final rule rescinding EEO-1 be published, Congress could act under the CRA to overturn it, though a presidential veto and the high threshold to override it make that outcome unlikely under current conditions.
With this new alert on the horizon, DirectEmployers continue to monitor the regulatory landscape and issue updates as developments arise. Members with questions about EEO-1 compliance or related federal contractor obligations are encouraged to reach out to their Directemployers Membership Team for support and compliance resources, utilize the discussion forum to connect with HR compliance peers, or RSVP to attend the upcoming Member Office Hours located in DE Connect.
THIS COLUMN IS MEANT TO ASSIST IN A GENERAL UNDERSTANDING OF THE CURRENT LAW AND PRACTICE RELATING TO OFCCP. IT IS NOT TO BE REGARDED AS LEGAL ADVICE. COMPANIES OR INDIVIDUALS WITH PARTICULAR QUESTIONS SHOULD SEEK ADVICE OF COUNSEL.
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