On May 20, 2025, the U.S. Equal Employment Opportunity Commission (EEOC) launched its platform for the submission of 2024 EEO-1 Component 1 data. The opening of the reporting period was accompanied by a clear warning from EEOC Acting Director Andrea Lucas: employers must not rely on demographic data collected through the EEO-1 report to justify any employment actions based on protected characteristics such as race or sex.
Legal Implications of Using EEO-1 Data
In a strongly worded statement, Lucas reminded employers of their obligations under Title VII of the Civil Rights Act of 1964. “Your company or organization may not use information about your employees’ race/ethnicity or sex—including demographic data you collect and report in EEO-1 Component 1 reports—to facilitate unlawful employment discrimination based on race, sex, or other protected characteristics in violation of Title VII,” she stated.
Lucas emphasized that the EEO-1 reporting process is not a green light for implementing race- or sex-conscious employment practices, even if disparities are revealed through the data. “There is no ‘diversity’ exception to Title VII’s requirements,” she added.
No Exception for Disparate Impact
In her remarks, Lucas also addressed the concept of disparate impact—a theory under which neutral employment practices can be found discriminatory if they disproportionately affect protected groups. She pointed to Executive Order 14281, issued by President Donald Trump on April 23, 2025, titled “Restoring Equality of Opportunity and Meritocracy,” which calls for a deprioritization of disparate impact enforcement across federal agencies, including the EEOC.
“The fact that a neutral employment policy or practice has an unequal outcome on employees of a particular race or sex—that is, has a ‘disparate impact’ based on race or sex—does not justify your company or organization treating any of your employees differently based on their race or sex,” Lucas stated. She reiterated that the EEOC under her leadership will prioritize enforcement against intentional discrimination rather than disparate impact claims.
Reporting Requirements and Compliance Deadlines
Under current regulations, private employers with 100 or more employees, as well as federal contractors with at least 50 employees meeting specific criteria, are required to file EEO-1 Component 1 reports annually. These reports collect workforce demographic data, including race/ethnicity, sex, and job categories.
The 2024 EEO-1 reporting platform will remain open until June 24, 2025, at 11:00 p.m. EDT, with no extensions planned. Employers are urged to complete their submissions promptly to remain in compliance.
Broader Enforcement Context
Lucas’s comments are consistent with broader EEOC guidance and recent policy shifts under the Trump administration. Since returning to office in January 2025, President Trump has issued a series of executive orders targeting diversity, equity, and inclusion (DEI) initiatives in federal contracting and employment, including the revocation of affirmative action requirements for federal contractors and the curtailment of the Office of Federal Contract Compliance Programs (OFCCP).
These developments underscore the evolving legal landscape surrounding DEI and underscore the importance for employers to ensure that well-intentioned initiatives do not run afoul of anti-discrimination laws.