This mandatory practice may be discrimination under the state Fair Employment and Housing Act that protects race, color, national origin and ancestry, and the federal Equal Employment Opportunity Act that protects race and national origin. If an employer is required to report race and ethnic data to the Equal Employment Opportunity Commission (EEOC) and the California Civil Rights Department (formerly known as the California Department of Fair Employment and Housing or DFEH), participation by employees must be voluntary.
You can find read more about EEO Reporting Requirements in the HR Library.