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Employment Law Update: EEOC Reset: What a New Majority and Shifting Priorities Mean for Employers

Date: October 16, 2025
The U.S. Equal Employment Opportunity Commission’s (“EEOC”) posture has shifted, and employers should take note. With the recent confirmation of a second Republican EEOC commissioner – Brittany Panuccio – the EEOC has a quorum on its 5-seat panel, with a 2–1 Republican majority. With the quorum restored, the EEOC can alter policy, guidance, strategic plans, and litigation priorities.

Early moves by EEOC Acting Chair Andrea Lucas indicate reduced processing of certain transgender-related charges (only processing complaints involving “hiring, discharge or promotion”), moving to dismiss gender identity cases the agency had been pursuing, and a de-prioritization of claims based on a disparate impact theory of liability.

With the EEOC now able to vote on its direction and initiatives, employers should expect to see: (1) reconsideration of Biden-era Harassment Guidance (which said that using the wrong pronouns for an employee or preventing an employee to use the bathroom of the gender they identify with was a form of sex harassment in violation of Title VII), (2) reconsideration of rules interpreting the Pregnant Workers Fairness Act in ways that could narrow the scope of required accommodations for women relating to reproductive health; (3) increased litigation targeting DEI practices viewed as discriminatory; and (4) reassessment of EEO-1 practices.

Action Plan for Employers

Employers should recalibrate rather than retreat. Employers’ “North Star” should continue to foster an inclusive and respectful workplace for all, regardless of any change in political winds. Some suggestions include:

DEI: Review DEI programs and training to ensure they comply with federal, state and local anti-discrimination laws. Ensure job screening, hiring, promotion, mentorship, and pipeline initiatives are grounded in neutral, job-related criteria; avoid racial and gender preferences as well as any other quotas, reserved slots, priorities, or categorical exclusions; and document business purposes.

Gender Identity/Sexual Orientation Discrimination: Continue robust and regular anti-discrimination/anti-harassment/anti-retaliation policies, training and practices that align with the Supreme Court’s Bostock decision and applicable state and local antidiscrimination laws, including respectful workplace expectations and complaint procedures. Train managers on legal requirements and state and local laws that may prohibit or prevent employees from using bathrooms aligned with their gender identity.

Disparate Impact: Maintain adverse impact testing for hiring (including with respect to the use of artificial intelligence tools in screening job applicants that may result in a disparate impact on legally protected groups), promotion, and reduction-in-force decisions. While the EEOC may be disregarding disparate impact cases, courts and private plaintiffs have not. Courts still recognize disparate impact as a form of unlawful discrimination. Use validated assessments, monitor outcomes, and remediate unexplained disparities.

Reasonable Accommodation: Refresh reasonable accommodation toolkits. Expect heightened religious accommodation scrutiny, including participation in DEI-related activities, and be prepared to re-evaluate the scope of accommodations relating to pregnancy as PWFA rules evolve (while remaining mindful of more state and local laws – requiring reasonable accommodation of pregnancy, childbirth and related medical conditions – that may be broader in scope than the PWFA). Train managers on handling requests for reasonable accommodation.

Please reach out to Whiteford’s Labor and Employment Law attorneys with any questions.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.