SHRM Supports Ending EEO Reports

The U.S. Equal Employment Opportunity Commission’s (EEOC) decision to end its EEO-1 data collection program has been met with resistance from stakeholders. The Society for Human Resource Management (SHRM) and the Interfaith Center on Corporate Responsibility (ICCR) have submitted public comments critiquing the agency’s decision.

SHRM has tentatively backed the end of EEO-1 reports, but only if it is replaced with a modern framework that provides guidance to employers. The organization believes that existing EEO reporting no longer reflects today’s workforce or employer needs.

The EEO-1 data collection program has been a topic of debate, with the EEOC maintaining that it is not statutorily required. ICCR executives have disputed this claim, arguing that data collection is required by Title VII of the 1964 Civil Rights Act.

ICCR has called on the EEOC to maintain the program, stating that EEO data collection is vital to antidiscrimination enforcement and allows employers to identify and monitor legal risks.

SHRM has noted that while it is supportive of efforts to reduce burdens on employers, compliance with other federal and state laws still necessitates the collection and retention of EEO data. They have advised the EEOC to consult and coordinate with state agencies on these points.

ICCR has defended EEO reporting from the investor perspective, stating that mandatory collection helps investors fulfill their fiduciary responsibilities. Executives said that full, fair, accurate, and robust disclosure and risk management brings investment capital to companies.

Attorneys have noted that a future reversal back to a Democratic-majority EEOC could mean the revival of EEO-1 reporting. Should that happen, employers who decide to abandon EEO data collection and retention entirely could be left with outdated processes.

Employers can maintain their EEO-1 reporting structure even if the EEOC decides to end mandatory reporting requirements.

Kalpana Kotagal, the EEOC’s lone Democratic commissioner, has expressed concerns that the agency’s attempt to end EEO reporting would confuse employers, given that Title VII’s recordkeeping requirement encompasses workforce demographic data.

The EEOC’s decision could lead to a patchwork of different reporting requirements across states, which could ultimately increase administrative complexity for employers.