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Employment
U.S. President Donald Trump speaks as he hosts a dinner in the Rose Garden at the White House on Sept. 2. Kevin Dietsch/Getty Images

Trump is scrapping a 60-year-old rule to protect workers from discrimination. How to spot a company's red flags

For the past six decades, a U.S. civil rights agency has collected data on the demographic makeup of companies in an effort to prevent discrimination in the workplace. That’s about to come to an end.

The U.S. Equal Employment Opportunity Commission (EEOC) voted this summer to approve a ruling ending the collection of workplace data. The data is the only collection of its kind and provides insight into workplace trends such as the percentage of women in senior positions and the racial makeup of staff.

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While the proposal marks a fundamental shift for EEOC, it comes amid the Trump administration’s attacks on diversity, equity and inclusion (DEI) efforts — and is raising concern about the future of the agency.

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The history of workplace civil rights

The EEOC was created by the 1964 Civil Rights Act to enforce civil rights laws in the workplace. Since its inception, the independent watchdog has brought discrimination cases on behalf of affected workers, thanks in part to the data collected by the agency.

The Civil Rights Act required employers to keep records of demographics and make them accessible to the EEOC. Employers with 100 or more employees must file an EEO-1 report that tracks gender, race and ethnicity across job categories.

It’s through this data that the EEOC identifies patterns of discrimination during its investigations. The data allows the agency to determine whether workplace policies have resulted in workers being treated differently.

That’s what happened in 2018 when the EEOC secured a $3.2-million settlement in a gender-discrimination case against CSX Transportation. Data collected showed that the physical strength test given to applicants unlawfully discriminated against women.

EEOC’s investigations have helped recover billions of dollars for employees who have faced discrimination and harassment.

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The transformation of the agency

The agency has undergone change — and rewritten parts of its strategic goals — since President Donald Trump began his second term in January 2025. Shortly after returning to office, Trump fired the EEOC’s general counsel and two of three Democrats on the bipartisan five-member commission.

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Republican Andrea Lucas was appointed commissioner by Trump and has undertaken a transformation of the agency. At a July hearing, Lucas claimed the agency’s data collection was burdensome to employers, unconstitutional, encouraged DEI practices and prompted discrimination against white workers.

The EEOC’s Republican majority voted 2-to-1 to end the collection of data, pending public comment. Thousands of comments were submitted, but the civil rights agency is expected to finalize the proposal as soon as this month with little changes.

The move was also recommended by Project 2025, a controversial conservative blueprint that has guided other Trump administration policies.

The EEOC did not respond to Moneywise’s request for comment in time for publication.

Spotting red flags in the workplace

With changes taking place at the EEOC, it’s important for workers to be able to identify red flags in the workplace to help protect them from discrimination — and know when to take action if it unfortunately happens. Here are some possible red flags:

  1. Questionable hiring practices: Being asked uncomfortable, unrelated or deeply personal questions during the hiring process can be a sign something is off. For example, questions about family planning, language skills or your ethnic background.
  2. Lack of diversity: A possible warning sign could be if a workplace is homogenous and tends to hire only certain kinds of people. It can also be problematic if the diversity is within fixed roles, for example if all the female members of a team are in administrative roles and all the male members are in management positions.
  3. Unequal pay or denied promotions: Talking about pay at work can be uncomfortable and frowned upon, but it can provide insight into workplace equality. If two employees with the same standing are being paid differently, it could indicate a form of workplace discrimination. Being overlooked for promotions could also be a sign of discrimination depending on the circumstances. American workers have the right to talk about wages and compensation with other workers, unions, and the media. It’s illegal for your employer to retaliate against you for this.

Despite changes to the EEOC, workers who believe they are experiencing discrimination should still file with their field office. Laws preventing discrimination are still the same despite changes to the EEOC’s mandate and the agency will still investigate potential civil rights violations.

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Rinna Diamantakos Contributing Editor

Rinna Diamantakos is a contributing editor at Moneywise.com. A versatile journalist, she has experience as a writer, editor and producer. Her work has focused on politics, business and financial news.

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