By: Ty Hyderally, Esq. and Jamie Davila, Esq.

July 13, 2026

The U.S. Equal Employment Opportunity Commission (EEOC) continues to make waves and has taken another notable step in reshaping the federal employment law landscape by rescinding its 1979 guidance on voluntary affirmative action programs under Title VII of the Civil Rights Act of 1964. This move reflects the agency’s constant evolving/changing interpretation of anti-discrimination laws and signals increased scrutiny of diversity, equity, and inclusion (DEI) initiatives that consider race, sex, or other protected characteristics in employment decisions.[1]

For employers, the rescission serves as a reminder to carefully review existing affirmative action, DEI, recruiting, promotion, and compensation practices to ensure compliance with current legal standards[2].

What Did the EEOC Rescind?

On June 30, 2026, the EEOC voted to withdraw two longstanding sources of guidance:

1. The 1979 interpretive guidance, “Affirmative Action Appropriate Under Title VII of the Civil Rights Act of 1964.”[3]
2. Section 607 of the EEOC Compliance Manual addressing affirmative action. [4]

For more than four decades, this guidance provided employers with a framework for implementing voluntary affirmative action measures designed to address workplace disparities affecting women and minority groups. The guidance outlined circumstances in which employers could undertake remedial actions following a reasonable self-analysis of workforce barriers or imbalances.[5]

Under EEOC Chair Andrea Lucas, the Commission has concluded that the guidance no longer aligns with the text of Title VII or modern Supreme Court precedent interpreting federal anti-discrimination laws.[6]

What Hasn’t Changed?

It is important to note that the EEOC’s action does not amend Title VII itself. Furtherx, the change does not automatically render all affirmative action programs unlawful. Existing Supreme Court decisions recognizing limited circumstances in which employers may adopt voluntary affirmative action measures remain intact.

The rescission primarily removes the EEOC’s longstanding administrative framework that employers previously relied upon when evaluating and defending affirmative action initiatives. This means that employers no longer have the benefit of the agency’s historical “roadmap” or safe-harbor guidance when enacting and evaluating voluntary affirmative action programs.[7]

Part of a Broader Shift in Employment Law

Over the last several years, courts and federal agencies have increasingly emphasized an individualized approach to anti-discrimination laws. The Supreme Court’s 2023 decision in Students for Fair Admissions v. Harvard significantly curtailed race-conscious admissions policies in higher education and sparked widespread reevaluation of DEI programs across both public and private sectors[8]. Although the case did not directly address employment practices, its reasoning has influenced discussions regarding workplace diversity initiatives. The EEOC’s rescission reflects a similar conclusion, that employment decisions generally should not be based on protected characteristics, absent a specific legal justification.

Practical Implications for Employers

Organizations should not interpret the rescission as a directive to abandon diversity efforts altogether. Employers may continue pursuing lawful initiatives aimed at broadening applicant pools, improving outreach efforts, and fostering inclusive workplace cultures. However, programs that incorporate race, sex, ethnicity, or other protected characteristics into hiring, promotion, selection, or compensation decisions may face heightened scrutiny.[9]

In light of the EEOC’s action, employers should consider:

• Reviewing affirmative action and DEI-related policies and programs.
• Evaluating hiring, promotion, and compensation processes for potential legal risk.
• Assessing whether current initiatives rely on guidance that is no longer in effect.
• Ensuring that employment decisions are supported by objective, job-related criteria.
• Consulting employment counsel to conduct privileged compliance reviews where appropriate.

It is important to note that Government contractors and public-sector employers should also remember that separate federal, state, local, or contractual affirmative action obligations may continue to apply despite the EEOC’s rescission. In New Jersey, the New Jersey Law Against Discrimination continues to prohibit discrimination and harassment based on numerous protected characteristics, such as race, sex, age, disability, sexual orientation, gender identity, religion, national origin, pregnancy, military service and other protected classifications.

Companies and organizations that proactively review and update their employment policies will be better positioned to navigate this changing landscape while continuing to promote equal employment opportunities in a legally compliant manner. Employers should ensure that employment decisions are well documented and supported by legitimate business reasons that are based on objective qualifications.

If you have any questions regarding your rights as an employee, you should seek an experienced attorney who concentrates on employment law. Our firm has been concentrating on employment law for over twenty-three (23) years!

En nuestra firma hablamos español. This blog is for informational purposes only. It does not constitute legal advice and may not reasonably be relied upon as such. If you face a legal issue, you should consult a qualified attorney for independent legal advice regarding your particular set of facts. This blog may constitute attorney advertising. This blog is not intended to communicate with anyone in a state or other jurisdiction where such a blog may fail to comply with all laws and ethical rules of that state or jurisdiction.

[1] Scott Unger, EEOC Rescinds Forty-Year-Old Affirmative Action Guidance: Why Employers Should Review Their DEI and Employment Practices Now, JDSupra, July 2, 2026, https://www.jdsupra.com/legalnews/eeoc-rescinds-forty-year-old-9346560/ (Last visited on July 7, 2026).

[2] Id.

[3] Id.

[4] Sarah N. Niemiroski, EEOC Rescinds Longstanding Affirmative Action Guidance, Shipman, July 1, 2026, https://www.employmentlawletter.com/2026/07/eeoc-rescinds-longstanding-affirmative-action-guidance/  (Last visited on July 7, 2026).

[5] Jack Blum, Erin D. Schilling, Shivani P. Bailey, William Whitaker, EEOC Moves to Rescind Longstanding Affirmative Action Rule Under Title VII, The National Law Review, June 3, 2026, https://natlawreview.com/article/eeoc-moves-rescind-longstanding-affirmative-action-rule-under-title-vii (Last visited on July 7, 2026).

[6] Id. at 1.

[7] Id. at 4.

[8] Id. at 1.

[9] Id.