How Employers Should Handle EEOC Employment Discrimination Case
When an employer faces a discrimination complaint filed through the EEOC, the initial reactions often include anger and fear. It’s important to pause and understand that only about 2% of these complaints lead to penalties. An EEOC investigation typically unfolds over at least 10 months.
Filing an EEOC complaint while still employed can add to the complexity of the case. Should the complaint be substantiated, the employer may be required to pay penalties and damages. In this article, our EEOC defense attorney discusses the severity of an EEOC complaint against an employer and outlines the implications. For a more detailed understanding of an employer’s rights and to discuss your specific situation with an attorney, please reach out to our employer defense lawyer for a complimentary consultation.
FAQ
What are the odds of winning an EEOC complaint?
Employers receiving an EEOC complaint can often leave them feeling confused, angry, or afraid. While facing an investigation by a federal agency might seem daunting, it initially involves just an investigation. How does an EEOC complaint hurt an employer? Anything said by a company’s representative to the EEOC investigator can be used as an admission against the company’s interest.
Although only 2% of EEOC charges result in enforcement action, these cases can lead to significant penalties and financial judgments that may jeopardize a company’s financial stability. Despite the EEOC’s high success rate in court, where it achieves favorable outcomes in nearly 96% of district court cases stemming from its complaints, the risk of representing oneself remains considerable. Therefore, consulting with a labor law attorney to evaluate the claims against your company is crucial.
What type of cases does the EEOC handle?
The EEOC enforces federal employment discrimination laws. What does the EEOC investigate? It is illegal to discriminate against an employee or job applicant based on:
- Age
- Color
- Disability
- Gender
- Genetic information
- National origin
- Pregnancy
- Race
- Religion
- Sex
- Sexual orientation
What qualifies as an EEOC complaint? It is also illegal to retaliate against an employee that engages in protected activities such as testifying in an EEOC case or filing a charge with the EEOC. Does the EEOC investigate every claim? Not every claim results in a full investigation, but every claim is reviewed.
The EEOC’s Strategic Enforcement Plan (SEP) for Fiscal Year 2024-2028 adheres to three guiding principles. A central component is the strategic approach, which encourages the EEOC’s staff to concentrate their efforts on identified priorities. This method aims to significantly impact employer practices, enhance legal compliance, and advance the Commission’s mission by proactively addressing priority issues through initiatives like Commissioner Charges and directed investigations.
Moreover, the EEOC emphasizes an integrated approach to its enforcement strategy, ensuring agency-wide consistency and collaboration. This integration involves uniform procedures and communication across various offices and program areas, enhancing the EEOC’s public-facing activities like outreach, education, and technology.
The plan also highlights the importance of cooperating with other federal, state, local, and Tribal entities, such as the Department of Justice and the Department of Labor, to protect civil rights in the workplace comprehensively.
Additionally, the EEOC commits to accountability and result-oriented service, utilizing its resources efficiently to support those in need and uphold its responsibility to enforce the nation’s workplace discrimination laws effectively.
Threshold to File A Complaint Against an Employer
The EEOC oversees only employers who have 15 or more employees. It investigates claims of discrimination specifically against employees belonging to a protected class. Any employee, whether a victim of discrimination or a witness to it, can file a charge with the EEOC. How serious is an EEOC complaint? The seriousness of an EEOC complaint can vary, but all complaints are taken seriously.
EEOC Investigation Procedure
Even if the EEOC complaint does not have merit, an employer should invest the time, effort, and money necessary to deal with it efficiently. Poor handling of an EEOC complaint, even one with no merit, can result in the employer paying expensive damages.
How long does an EEOC investigation take? EEOC investigations can take several months to over a year. Employers will need to submit a statement of position which gives them the chance to refute the discrimination claim and provide evidence such as policies, employment contracts, and disciplinary records for the charging party.
The EEOC will also submit formal requests for relevant documents such as personnel files, HR policies, and employment handbooks. What percentage of EEOC cases won? A significant percentage of EEOC cases result in favorable outcomes for the complainants, but specific statistics may vary annually.
EEOC investigators may request to visit the workplace, though they acknowledge it may disrupt the workplace. They may seek to conduct interviews with employees and copy files. Please visit the EEOC website for EEOC procedure.
Typical EEOC Investigation Proceedings
The information the EEOC uncovers during the investigation is used to determine whether further action is needed. If the EEOC believes there may have been discrimination, they will move on to formal investigation. EEOC charge transferred to investigation means the complaint has advanced to a more serious review.
In a formal investigation, EEOC investigators may subpoena company documents and compel employees to provide statements. If they don’t already, an employer should seek legal representation at this point to manage their rights and responsibilities.
Handling an EEOC complaint without legal counsel can turn a groundless complaint into a major investigation. An employment lawyer will assist you in co-operating with the EEOC without providing too much information.
Mediation or Costly Litigation
The EEOC will suggest mediation through their formal services to applicable cases. This is a voluntary service that both parties can agree to or refuse.
How long does employer have to respond to EEOC charge? Employers typically have 30 days to respond to an EEOC charge. The employer will not have to admit liability or guilt, and the result of the mediation will be confidential. In most cases, changes to procedures and policies are required to appease the charging party.
If the case is too serious for mediation or the employer declines mediation, then the EEOC may sue the employer. Employer declined EEOC mediation means the case may proceed to litigation.
In severe cases, the EEOC will sue on the employee’s behalf; in other cases, the EEOC will issue a right to sue order to the employee. The employee will then have 90 days to file a lawsuit with the federal court. Regardless of the suing party, a lawsuit will cause bad publicity and legal expense.
Penalties And Indemnifications: What Happens When The EEOC Finds An Employer Guilty?
No matter the resolution of an EEOC complaint, the penalties an employee wins will provide financial relief for their discrimination.
What can the EEOC do to an employer? Employers found liable may be required to cover substantial damages including back pay, hiring, promotion, reinstatement, front pay, and reasonable accommodations, among other measures intended to restore the victim to their original position.
Additionally, they might also have to pay attorney fees and court costs. Depending on the nature of the complaint, penalties may include:
- Reinstating the employee
- Promoting the employee
- Paying back wages
- The employees legal and court costs
If the complaint goes to court, the court may award additional compensation as well as punitive damages. These damages are capped at:
- $50,000 per person when the company has 15-100 employees
- $100,000 per person if the company has 101-200 employees
- $200,000 per person if the company has 201 – 300 employees
- $300,000 if the company has over 300 employees
If the complaint is discrimination based on age or pay discrimination due to sex, then the damages are limited to the complainant’s lost wages.
What is the average settlement for EEOC?
Determining the potential value of a discrimination case can be challenging, as the specifics of each case, including the nature of the allegations, the size of the employer, and the damages incurred by the complainant, play a significant role.
According to the Equal Employment Opportunity Commission (EEOC), the average settlement for employment discrimination claims is about $40,000. Successful EEOC complaints can lead to significant settlements or policy changes. However, this figure can vary widely.
Most cases are resolved before reaching court, and settlements often include both monetary compensation and non-monetary remedies such as changes in workplace policies or training programs. While a majority of cases get settled out of court, some do go to trial, where outcomes can significantly differ from pre-trial settlements. For more detailed insights, the EEOC’s annual reports or consultations with legal experts might provide further information on recent trends and averages.
