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 demonstrates 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.
The EEOC’s final rule—which took effect January 10—provides the first concrete guidance as to how the agency will treat undue hardship requests.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.