What Employers Need to Know About the EEOC’s Rescission of Affirmative Action Guidelines and Enforcement Priorities

Key Takeaways

• The EEOC has rescinded its 1979 Affirmative Action Guidelines, eliminating the agency’s long-standing framework and good-faith reliance defense for employers with voluntary affirmative action programs.
• The rescission reflects the EEOC’s broader enforcement priorities under the FY2025–2029 National Enforcement Plan, with increased scrutiny of race- and sex-conscious employment practices, including certain DEI initiatives, hiring practices, and compensation programs.
• Employers should review affirmative action, DEI, hiring, promotion, and training policies now to assess Title VII risk, document legitimate business justifications, and consider race- and sex-neutral alternatives where appropriate.

As the Trump Administration continues to focus on race- and sex-based employment practices, the U.S. Equal Employment Opportunity Commission (“EEOC”) has taken recent action to rescind historical guidance on affirmative action. On June 29, 2026, the EEOC voted to rescind its 1979 Guidelines on Affirmative Action Appropriate Under Title VII of the Civil Rights Act of 1964 (29 C.F.R. Part 1608) (the “Guidelines”), with the rescission taking effect upon publication in the Federal Register on July 6, 2026.¹ Understanding the practical and legal impacts of this rescission is important for employers evaluating existing affirmative action, DEI, and other employment practices under Title VII, particularly in light of the Administration’s clear mandates as communicated in Executive Orders and other guidance.

What Did the Guidelines Say?

The 1979 framework encouraged employers to undertake voluntary affirmative action efforts, set requirements for defensible plans (reasonable self-analysis, reasonable basis for action, and reasonable action), and offered a good-faith reliance defense to employers whose practices conformed with the EEOC’s written guidance.² While the rescission of the Guidelines does not change Title VII or interpretive case law, or make voluntary affirmative action plans illegal, employers who wish to implement such programs can no longer rely on the Guidelines’  framework or its safe harbor as support in modeling their programs.

Why the EEOC Rescinded the Guidelines

The EEOC concluded that the Guidelines were inconsistent with the plain text of Title VII, which prohibits discrimination because of race, color, religion, sex, or national origin. The EEOC determined that the Guidelines were obsolete in light of more than four decades of intervening case law and reasoned that the Guidelines create unequal standards for majority-group employees. EEOC Chair Andrea Lucas stated, in the EEOC’s press release announcing the rescission, that the rescission “reaffirms that Title VII’s protections apply equally to all American workers.”

The EEOC’s New Enforcement Posture

The rescission of the Guidelines is consistent with the EEOC’s recent enforcement posture, which is spelled out in its National Enforcement Plan (“NEP”) for FY2025–2029.³ The NEP describes the EEOC’s intent to prioritize enforcement of disparate treatment claims, while shifting its focus away from disparate impact claims, consistent with the DOJ opinion that we previously covered here. The EEOC makes clear that, during the term of the NEP, it will not “commence, develop, or continue to pursue litigation advancing disparate impact claims.” The NEP identifies the following relevant enforcement priorities:

• Job advertisements that exclude or encourage applicants based on a protected characteristic;
• Staffing agencies or fellowship programs that select on the basis of a protected characteristic;
• Policies preferencing guest worker visa holders; and
• Policies labeled or framed as “diversity, equity, and inclusion” or similar terms.

Specific examples of targeted practices identified in the NEP include:

• Race- or sex-based quotas, including “aspirational goals” that function as quotas;
• Diverse slate and hiring panel policies;
• Diversity statements required of candidates;
• Executive compensation tied to demographic goals; and
• Limiting access to training, mentorship, advancement opportunities, or fringe benefits on the basis of a protected characteristic.

These types of programs have been subject to increased scrutiny since the Administration’s Executive Orders issued in early 2025, and the NEP makes clear that this scrutiny will continue.

Practical Impact

Like other agency action, the rescission does not amend Title VII or overrule Supreme Court decisions recognizing limited lawful voluntary affirmative action. However, employers can no longer rely on the EEOC’s prior framework as a defense, and any race- or sex-conscious employment practice will continue to face heightened agency scrutiny. In light of these developments, employers should consider taking the following steps:

• Review affirmative action, DEI, hiring, promotion, and training practices for protected-characteristic preferences, whether actual or perceived;
• Document the business and legal basis for any continuing affirmative action or diversity-related programs; and
• Assess whether legitimate business and professional development goals can be met through alternative means that do not rely on protected-characteristic classifications.

If you have any questions about how these developments may affect your organization’s affirmative action, DEI, or other employment practices, please contact a member of AGG’s Employment team.

[1] U.S. Equal Emp. Opportunity Comm’n, EEOC Votes to Rescind Affirmative Action Interpretive Guidelines and Related Compliance Manual, June 30, 2026.

[2] Affirmative Action Appropriate Under Title VII of the Civil Rights Act of 1964, as Amended, 29 C.F.R. pt. 1608 (2025), rescinded by 91 Fed. Reg. 40,879, July 6, 2026.

[3] U.S. Equal Emp. Opportunity Comm’n, National Enforcement Plan Fiscal Years 2025–2029, EEOC Directives Transmittal No. 600.001, June 4, 2026.