Final answer:
The answer is A) True. EEO laws require employers to collect demographic data on applicants for affirmative action and compliance monitoring but forbid the use of this information in hiring decisions, except under very specific and rare conditions as outlined by laws such as the Civil Rights Act of 1964 and the EEOC.
Step-by-step explanation:
The statement that EEO laws require employers to collect data on race, sex, and other demographics about their applicants but legally cannot use this information in making hiring decisions except in very limited circumstances is True. According to the U.S. Equal Employment Opportunity Commission (EEOC), federal laws make it illegal to discriminate against a job applicant or an employee based on race, colour, religion, sex (including pregnancy), sexual orientation, national origin, age (40 or older), disability, or genetic information. Employers are recommended to avoid asking questions about these personal characteristics as they cannot legally use them as a basis for employment decisions. Instances where such information is relevant to job performance are exceptionally rare and highly regulated. The Civil Rights Act of 1964 (notably Title VII) and following legislations like the Pregnancy Discrimination Act of 1978 dictate these stipulations, ensuring equal employment opportunity and protecting applicants from discrimination in various employment practices, including hiring, benefits, promotions, or termination. Enforcement and oversight of compliance with these laws are part of the EEOC's remit. Therefore, collecting demographic data is typically for ensuring compliance with federal affirmative action requirements or examining recruitment trends but must not be used for discriminatory purposes.