When an employer has an EEOC discrimination complaint filed against them, the first reaction is generally anger and fear. Please take a deep breath and know that only 2% of EEOC complaint result in penalties. An EEOC complaint which is an investigation that usually takes at least 10 months to resolve. If the complaint is upheld, the employers will pay penalties and damages. In this article, our EEOC defense attorney explains how serious is an EEOC complaint against an employer. Please contact our employer defense lawyer for a free consultation about employers rights.
FAQ
Often employers will feel confused, angry, or afraid upon receiving the EEOC complaint. While it seems like there is no upside to being investigated by a federal agency, the first stage of the process is simply an investigation. Everything a company’s representative says to the EEOC’s investigator becomes an “admission” against interest. Only 2% of EEOC charges result in action. While a company may want to take the risk to represent itself in front of the EEOC, that 2% risk may lead to a substantial penalty and money judgment that can bankrupt a company. It is good idea to consult with a labor law attorney to determine the merit of of the claims against your company.
The EEOC enforces federal employment discrimination laws. It is illegal to discriminate against an employee or job applicant based on:
- Color
- Race
- National origin
- Religion
- Sex
- Gender
- Sexual orientation
- Pregnancy
- Age
- Genetic information
- Disability
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.
Threshold to File A Complaint Against an Employer
Only employers with 15 or ore employees can be overseen by the EEOC. The EEOC will only investigate claims of discrimination against employees of a protected class. Any employee can file a charge with the EEOC, whether they were victims of discrimination or witnesses discrimination.
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. 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.
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. 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. 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. 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
No matter the resolution of an EEOC complaint, the penalties an employee wins will provide financial relief for their discrimination. 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 id 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.