EEO-1 Compliance And The Future Of Equity At Work

Forbes

25-06-2025

Hayley Bakker is the Head of Customer Journey & Digital Enablement at beqom, which supports pay equity with data-driven software.
As the political winds shift, so too do the compliance and operational landscapes for U.S. employers. The new administration has initiated an extensive rollback of DEI initiatives across federal agencies and institutions that receive federal funding. Similar efforts are underway in many states, with laws banning certain types of DEI training, affirmative action in hiring and even demographic tracking beyond what is federally mandated. This has created a challenge for organizations to remain in compliance with the Equal Employment Opportunity Commission (EEOC)'s EEO-1 reporting requirement.
A Refresher On The EEO-1 Report
The EEOC mandates that private employers with 100 or more employees, as well as certain federal contractors with more than 50 employees, must submit annual demographic workforce data categorized by race/ethnicity, gender and job category. With this information, the EEOC can better enforce Title VII of the Civil Rights Act by identifying systemic discrimination and promoting equal employment opportunity.
Because of this requirement, many employers bolstered their internal DEI programs as both a strategic and a compliance-focused initiative. Efforts often included more rigorous data collection practices, internal audits, the creation of employee resource groups (ERGs), pay equity analyses and cultural competency training. Initiatives like these helped organizations comply with reporting requirements and proactively address gaps before they became liabilities. In essence, DEI wasn't just about optics; it was a risk mitigation tool.
While the EEO-1 report remains a legal requirement, the infrastructure that many organizations built to support it is now in a precarious position. HR and compliance leaders face a dilemma as pressure increases to scale back or eliminate DEI teams. The question they're forced to ask themselves is whether they can uphold the spirit of antidiscrimination laws and adhere to federal reporting requirements in an environment that's increasingly hostile to the very practices that make it possible.
5 Strategies For Walking This Tightrope
To maintain commitment to equitable practices while navigating legislative shifts, HR leaders can adopt these strategies.
One of the most effective strategies for minimizing pushback on internal DEI work is framing it as a function of risk management, not a statement of ideological alignment. Emphasize that demographic reporting, internal audits and equitable pay structures are core elements of compliance, governance and fiduciary responsibility.
A common objection to the concept of diversity comes from the assumption that it's a way to privilege one group over another. Replacing common DEI terminology with things like 'workforce analytics,' 'fair employment practices' or 'inclusive leadership' can reduce scrutiny of your efforts to maintain fair practices. In communications, focus on the intended outcomes, like broadening talent pools and more structured criteria for performance evaluation and compensation.
While DEI departments may shrink, the need for informed leadership is greater than ever. Brief boards and executive teams on the legal mandates that remain in place, the risks of noncompliance and the expectations of employees and the market they operate in. Leadership can then share the mandate to related teams to continue the equity- and compliance-related components.
Even amid shifting federal policies, transparency expectations from employees, investors and customers remain high. It's a key aspect of building and retaining trust. Implementing robust internal systems that track demographic and compensation data will ensure continuity in reporting, whether it's for EEO-1, ESG disclosures or shareholder requirements.
Finally, the most effective approach to demonstrate antidiscrimination is having well-documented and enforced hiring, performance, promotion and firing practices in place. Design them to accommodate auditable decision-making and to demonstrate that due process was followed, based on objective factors.
Looking Ahead
Though the political climate may be hostile to DEI initiatives, the legal, business and reputational imperatives for equity and transparency aren't going away. In fact, with the launch of new pay transparency regulations and renewed scrutiny on corporate practices, the role of workforce analytics and equitable HR processes may grow in importance.
As HR leaders, the task isn't to abandon the principles of equity and inclusion but to adapt how you frame and operationalize them. The path forward will require legal savvy, data literacy and a steady commitment to building a fair workplace. We must always ask ourselves, "What kind of workplaces do we want to build?" and remember that having the right processes and systems is foundational for achieving our goals.
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