In a win for transparency advocates and investigative journalists, the Ninth Circuit Court of Appeals ruled that the U.S. Department of Labor (DOL) must hand over demographic workforce data from federal contractors to a nonprofit newsroom. The court’s decision affirms a lower court’s conclusion that this information is not protected as confidential commercial data and should be accessible under the Freedom of Information Act (FOIA).
Background: What the Data Entails
At the center of the dispute is a dataset known as EEO-1 Component 1 reports—detailed demographic filings that federal contractors are required to submit annually to the DOL. These reports include information about a company’s workforce broken down by race, gender, and job category. The Center for Investigative Reporting (CIR), through its outlet Reveal, requested the records as part of a public interest investigation.
The DOL denied the request, arguing that releasing the data could reveal sensitive commercial information, potentially harming the companies’ competitive standing or inviting public criticism. CIR challenged the denial in federal court.
The Ninth Circuit’s Reasoning
In its ruling, the Ninth Circuit decisively rejected the DOL’s arguments. The court held that the government failed to demonstrate that the demographic data qualified as confidential commercial information exempt from FOIA disclosure. The judges emphasized that the reports do not contain trade secrets, pricing structures, or other proprietary business details that typically warrant protection.
According to the opinion, the public’s right to access information about how government contractors staff their workplaces outweighs speculative concerns about reputational harm. The court added that transparency in federal contracting promotes accountability, especially in evaluating diversity and equity in the companies that benefit from taxpayer dollars.
Broader Implications for Public Access
This decision could have far-reaching consequences beyond this single case. Journalists, researchers, and watchdog organizations may now be emboldened to request similar data, opening up new avenues to monitor workforce equity, hiring patterns, and potential discrimination across the federal contracting landscape.
It also marks a critical reminder for federal agencies: FOIA exemptions must be applied narrowly and cannot be used to shield politically inconvenient or publicly relevant data. Simply labeling information as “commercial” isn’t enough.
What Comes Next
Unless the DOL seeks further appeal, likely to the U.S. Supreme Court, the data will soon be turned over to CIR. The release could lead to new investigative reporting on workforce diversity—or the lack thereof—among some of the government’s largest private contractors.
For transparency advocates, it’s a precedent-setting win. For contractors, it signals a new era where workforce composition may be subject to greater scrutiny. And for the public, it affirms a core democratic principle: that information gathered with taxpayer dollars should, in most cases, be open to all.
For further details, please contact the lawyers at Tobia & Lovelace Esq., LLC at 201-638-0990.