A shareholder advocacy group called As You Sow has filed a lawsuit against the Trump administration, saying the government has refused to release workplace diversity data for more than two years. The lawsuit was filed in federal court in Washington, D.C. and targets the Department of Labor over its handling of a public records request.
As You Sow says it requested diversity data covering 2021 and 2022 but has not received the information despite waiting for years, according to the lawsuit cited by USA TODAY. The case was filed under the Freedom of Information Act (FOIA), a law that allows the public to request government records. As You Sow says it has previously used this workplace diversity data to publish reports examining the connection between workforce diversity and company financial performance.
Andrew Behar, CEO of As You Sow, said workforce diversity is an important business issue that many investors consider when making investment decisions. Danielle Fugere, president and chief counsel of As You Sow, said investors are “flying blind” without access to the data, as noted by USA TODAY.
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Diversity data at the center of DEI changes
Large companies are required to submit employee demographic information through forms known as EEO-1 reports every year. These reports include employee breakdowns by race and gender.
EEO-1 reports have been used since the 1960s to identify workplace discrimination patterns and support civil rights investigations. The Trump administration has signaled that it wants to stop collecting this diversity data as part of its broader diversity, equity, and inclusion (DEI) reforms.
Investors push back
Some investors strongly oppose ending EEO-1 reporting requirements. Tom DiNapoli, the New York State Comptroller, said his office plans to formally oppose the EEOC’s move to discontinue EEO-1 data collection.
DiNapoli said investors need the data to make informed investment decisions. He argued that EEO-1 reports provide a clear and consistent view of a company’s workforce and help investors evaluate talent management, risks, and long-term performance, as reported by USA TODAY. DiNapoli also said transparency strengthens financial markets rather than harming them.
Will diversity data disappear completely?
Even if the federal government stops collecting EEO-1 data, workplace diversity information is unlikely to disappear completely. States including California and Illinois already require employers to submit workforce demographic reports. More states could introduce similar reporting requirements if the federal government ends EEO-1 data collection.
Colorado recently passed a law requiring employers to submit EEO-1 data to the state beginning in July 2027. The lawsuit is the latest battle over workplace diversity reporting in the United States. As You Sow and several investors say the data is important for investment decisions and transparency, while the Trump administration and its allies argue that collecting race-based workforce data should be reduced or eliminated.
