EEOC Revises Rule Governing EEO Reporting Exemptions

January 15, 2025

What's New

The EEOC issued a final rule January 10, 2025, revising its regulations governing hardship exemptions from annual EEO-1 reporting.

To be exempt from EEO reporting requirements, an employer must show undue hardship. Previously, EEOC Commissioners voted on exemption applications. Now, however, the Chief Data Officer will process applications.

Under the new rule, an exemption is more likely to be granted when:

• The filer shows effort to collect and retain the required information;
• The filer has a history of complying with reporting requirements; or
• The circumstances are extraordinary or beyond the filer’s control.

However, an exemption is less likely to be granted when the filer:

• Has a large number of establishments;
• Lacks knowledge of reporting requirements;
• Routinely or purposely expunges data; or
• Fails to plan for adequate security, maintenance, or transfer. 

What It Means

While it is rare for sophisticated employers to seek undue hardship exemptions from EEO reporting requirements, situations may arise that justify an undue hardship request. The EEOC’s final rule provides the first concrete guidance as to how the agency will treat those requests.

What You Should Do

CWC members can discuss this and other practical aspects of EEO reporting during our regular Conversation Corners.

RELATED CONTENT

Subscribe to CWC's Updates and Events

CLICK TO SIGN UP