HR and future of work · Industry brief

The EEOC voted July 21 to propose rescinding EEO-1 through EEO-6 reporting requirements, which currently mandate that private employers with 100+ employees, federal contractors, unions, and state/local governments report workforce demographics by race and sex. The proposed rule would eliminate associated recordkeeping requirements and is estimated to save employers $275 million annually in compliance costs. The Commission argues the routine blanket demographic collection violates equal protection principles under recent Supreme Court precedent, including Students for Fair Admissions v. Harvard, and stands in tension with Title VII's colorblind employment requirement. The Notice of Proposed Rulemaking must be published in the Federal Register before a 30-day public comment period opens, with a public hearing scheduled for August 11. Employers should continue preparing EEO-1 data as the reporting requirement remains in effect until a final rule is published.

The US Department of Justice issued its first declination letter under its new corporate enforcement policy, formally declining to pursue criminal charges against Campus Eye Management, an eye care physician group practice, following the company's voluntary self-disclosure of healthcare fraud involving duplicative diagnostic tests and unlawful kickbacks concealed through sham consulting agreements. The DOJ's March 2026 policy establishes uniform standards for corporate self-disclosure with potential declination, full cooperation, and timely remediation as core requirements, while maintaining individual accountability—Campus Eye's founder was separately indicted on seven counts. The case illustrates implications for healthcare organizations' compliance programs and investor due diligence, though companies must weigh declination benefits against costs including reputational risk, False Claims Act exposure, and potential shareholder litigation.