EEOC EXPANDS INVESTIGATIONS – WHAT EMPLOYERS NEED TO KNOW (2011)
By Ronald Rice - Mr. Rice is President of Diamond Corporate Services, a human resources outsourcing firm specializing in payroll, PEO services, employee benefits and HR.
What you don’t know about the EEOC can hurt you.
What you don’t know about the EEOC can hurt you.
The U.S. Equal Employment Opportunity Commission (EEOC) announced In January that private sector workplace discrimination charge filings with their federal agency nationwide hit an unprecedented level of 99,922 during fiscal year 2010. These complaints from employees and ex-employees of private businesses led to the individuals recovering $404 million from the owners of those businesses, which is an average of $4000 paid per complaint. Further costs to a business would be incurred if the ex-employee proceeds to file a lawsuit after the review by the EEOC. Legal costs, court costs and the settlement of a lawsuit can bring the total expense to over $100,000 for the business owner for just one case of alleged discrimination.
Owners who have experienced an EEOC investigation and a lawsuit by an ex-employee tell me that the time involved and the stress upon the owner are just as much a concern as the monetary costs. With a record number of discrimination complaints filed, and a record amount paid out by businesses, 2011 is an ideal time to review your knowledge of the EEOC and to prepare for how you would respond to an inquiry from the EEOC if confronted by a complaint from one of your employees or former employees. A good website to review is http://www.eeoc.gov/employers/index.cfm.
I’ve never had a problem before… I use common sense.
Many business owners have a general idea about discrimination law and I’ve heard owners say they have never had a claim in the past, and have good ‘common sense’ when it comes to having fair employment practices. This general competence has proven to be insufficient to avoid EEOC investigations and large payouts.
The first issue is the rising occurrence of discrimination charge filings. It seems that the cost to an employee to allege discrimination is virtually zero. The EEOC will usually investigate and provide legal assistance free of charge to the complainant. Furthermore, private attorneys representing the employee have been known to take discrimination cases on a contingency basis to eliminate any upfront expenses to the employee. Even if the employee’s claim is later shown to have no merit, or is merely a nuisance claim filed to inconvenience the employer, there does not seem to be any penalties or consequences for the employee. The employee’s mere perception that they were mistreated seems to be enough for the EEOC to accept the case and start an investigation. A business census I found showed that there are about 107,000 private businesses in the U.S. with more the 100 employees. If the EEOC is investigating 100,000 claims per year, it is likely that your enterprise will be contacted in the future even if you haven’t been in the past (The EEOC can investigate businesses with as few as 15 employees, although investigations of large businesses are more common).
Additionally, there have been an increasing number of cases where employers ended up offering large settlements to ex-employees even though the owners were certain that no discrimination had occurred, by the owner’s own definition of what would be considered illegal discrimination. Quite often the discrimination is based on the perception of the employee victim and not on any intent to break the law by the employer. Thus, the ‘common sense’ approach to using fair business practices is not enough.
Owners who have experienced an EEOC investigation and a lawsuit by an ex-employee tell me that the time involved and the stress upon the owner are just as much a concern as the monetary costs. With a record number of discrimination complaints filed, and a record amount paid out by businesses, 2011 is an ideal time to review your knowledge of the EEOC and to prepare for how you would respond to an inquiry from the EEOC if confronted by a complaint from one of your employees or former employees. A good website to review is http://www.eeoc.gov/employers/index.cfm.
I’ve never had a problem before… I use common sense.
Many business owners have a general idea about discrimination law and I’ve heard owners say they have never had a claim in the past, and have good ‘common sense’ when it comes to having fair employment practices. This general competence has proven to be insufficient to avoid EEOC investigations and large payouts.
The first issue is the rising occurrence of discrimination charge filings. It seems that the cost to an employee to allege discrimination is virtually zero. The EEOC will usually investigate and provide legal assistance free of charge to the complainant. Furthermore, private attorneys representing the employee have been known to take discrimination cases on a contingency basis to eliminate any upfront expenses to the employee. Even if the employee’s claim is later shown to have no merit, or is merely a nuisance claim filed to inconvenience the employer, there does not seem to be any penalties or consequences for the employee. The employee’s mere perception that they were mistreated seems to be enough for the EEOC to accept the case and start an investigation. A business census I found showed that there are about 107,000 private businesses in the U.S. with more the 100 employees. If the EEOC is investigating 100,000 claims per year, it is likely that your enterprise will be contacted in the future even if you haven’t been in the past (The EEOC can investigate businesses with as few as 15 employees, although investigations of large businesses are more common).
Additionally, there have been an increasing number of cases where employers ended up offering large settlements to ex-employees even though the owners were certain that no discrimination had occurred, by the owner’s own definition of what would be considered illegal discrimination. Quite often the discrimination is based on the perception of the employee victim and not on any intent to break the law by the employer. Thus, the ‘common sense’ approach to using fair business practices is not enough.
Understanding the EEOC
The U.S. Equal Employment Opportunity Commission (EEOC) is responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information. It is also illegal to discriminate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit (known as “retaliation”).
Most employers with at least 15 employees are covered by EEOC laws (20 employees in age discrimination cases). The laws apply to all types of work situations, including hiring, firing, promotions, harassment, training, wages, and benefits. According to the 2010 data, all major categories of charge filings increased. These include charges alleging discrimination under Title VII of the Civil Rights Act of 1964, as amended; the Equal Pay Act; the Age Discrimination in Employment Act; the Americans with Disabilities Act; and the Genetic Information Nondiscrimination Act (GINA). Last year, for the first time ever, retaliation under all statutes (36,258) surpassed race (35,890) as the most frequently filed charge, while allegations based on religion (3,790), disability (25,165) and age (23,264) also increased. In its first year of enforcement, the EEOC received 201 charges under GINA. Historically, race had been the most frequently filed charge since the EEOC became operational in 1965.
The EEOC has the right to bring lawsuits against employers, but only has done this in a small percentage of claims. Two hundred fifty (250) lawsuits were filed in fiscal year 2010, and sometimes these were larger cases where there were multiple complaints against a corporation across several states. Normally, the EEOC’s approach is to do an investigation and then report their findings to both sides. Often, they will offer to organize a conciliation (or settlement conference) to resolve the complaint. In their recent press release, they proudly stated that they helped resolve 9,370 cases in 2010, resulting in $142 million in settlements for individuals (an average of more than $15,000 of cost to the employer). The EEOC often has a slow and deliberate approach to investigating, and often takes a year or more to issue their findings and conclusions. In 2010, the EEOC started a process to speed things up to close out case files within a more reasonable time. To this end, I expect we will see even more conciliation and settlement offers in the future since those have been an effective way of resolving cases without the claimant filing a lawsuit against a former employer.
The EEOC considers its mission to be a valuable public service. They represent the lowly employee who, in the past, had little recourse against powerful corporations who abused the law by mistreating the unfortunate victim through unfair dealings. The EEOC also advertises programs to educate the public in the effort to prevent discrimination before it occurs through outreach, education and technical assistance
programs. Understanding the EEOC’s mission helps put into perspective their mindset and approach when they contact you about a charge filed against your business. The EEOC has the authority to investigate charges of discrimination against employers who are covered by the law. Their role in an investigation is to fairly and accurately assess the allegations in the charge and then make a finding. If they find that discrimination has occurred, they will try to orchestrate a settling of the charge. If the EEOC is not successful, they have the authority to file a lawsuit to protect the rights of individuals and the interests of the general public. They do not, however, file lawsuits in most cases where they find discrimination. Quite often, a finding of discrimination in a Letter of Determination from the EEOC becomes the ‘smoking gun’ that leads the ex-employee to hire an attorney privately and file a lawsuit themselves without further assistance from the EEOC.
Frustrations: Some stories on the internet, although unverified, illustrate the frustration employers have with the EEOC and its pro-employee viewpoint:
A sandwich shop employee began wearing a nose ring, which she said was a religious practice of a specific African religion. She did not comply with the employer’s request for documentation of the religious nature of the practice, and was terminated. The case went to trial and the jury found that the nose ring was not based on a sincerely held religious belief. Despite the verdict, the EEOC still wanted the trial judge to award punitive damages and issue an injunction against the employer due to the employer’s practice of asking employees for documentation supporting requests for religion-based waivers. The EEOC argued that requiring employees to prove that a practice is required by their faith is itself a violation of Title VII. The court denied that request.
In another case, the EEOC represented a Muslim woman who got a job operating printing equipment. Her loose-fitting clothing was considered to be a safety hazard by the employer who was concerned the clothing would get caught in a machine and cause her injury. The EEOC wanted the courts to have the employer compensate the woman for refusing to change her style of dress. In another case, the EEOC expected that an employee who had been off on FMLA for more than twelve weeks (the FMLA limit) should be granted additional personal leave and guaranteed the right to return to his former job. In some instances, extended leave of absence policies may give a disabled employee the right to return to their job after more than a year, according to the EEOC. What the EEOC views as a “reasonable accommodation” may be radically different from your view as the owner of a business.
Most employers with at least 15 employees are covered by EEOC laws (20 employees in age discrimination cases). The laws apply to all types of work situations, including hiring, firing, promotions, harassment, training, wages, and benefits. According to the 2010 data, all major categories of charge filings increased. These include charges alleging discrimination under Title VII of the Civil Rights Act of 1964, as amended; the Equal Pay Act; the Age Discrimination in Employment Act; the Americans with Disabilities Act; and the Genetic Information Nondiscrimination Act (GINA). Last year, for the first time ever, retaliation under all statutes (36,258) surpassed race (35,890) as the most frequently filed charge, while allegations based on religion (3,790), disability (25,165) and age (23,264) also increased. In its first year of enforcement, the EEOC received 201 charges under GINA. Historically, race had been the most frequently filed charge since the EEOC became operational in 1965.
The EEOC has the right to bring lawsuits against employers, but only has done this in a small percentage of claims. Two hundred fifty (250) lawsuits were filed in fiscal year 2010, and sometimes these were larger cases where there were multiple complaints against a corporation across several states. Normally, the EEOC’s approach is to do an investigation and then report their findings to both sides. Often, they will offer to organize a conciliation (or settlement conference) to resolve the complaint. In their recent press release, they proudly stated that they helped resolve 9,370 cases in 2010, resulting in $142 million in settlements for individuals (an average of more than $15,000 of cost to the employer). The EEOC often has a slow and deliberate approach to investigating, and often takes a year or more to issue their findings and conclusions. In 2010, the EEOC started a process to speed things up to close out case files within a more reasonable time. To this end, I expect we will see even more conciliation and settlement offers in the future since those have been an effective way of resolving cases without the claimant filing a lawsuit against a former employer.
The EEOC considers its mission to be a valuable public service. They represent the lowly employee who, in the past, had little recourse against powerful corporations who abused the law by mistreating the unfortunate victim through unfair dealings. The EEOC also advertises programs to educate the public in the effort to prevent discrimination before it occurs through outreach, education and technical assistance
programs. Understanding the EEOC’s mission helps put into perspective their mindset and approach when they contact you about a charge filed against your business. The EEOC has the authority to investigate charges of discrimination against employers who are covered by the law. Their role in an investigation is to fairly and accurately assess the allegations in the charge and then make a finding. If they find that discrimination has occurred, they will try to orchestrate a settling of the charge. If the EEOC is not successful, they have the authority to file a lawsuit to protect the rights of individuals and the interests of the general public. They do not, however, file lawsuits in most cases where they find discrimination. Quite often, a finding of discrimination in a Letter of Determination from the EEOC becomes the ‘smoking gun’ that leads the ex-employee to hire an attorney privately and file a lawsuit themselves without further assistance from the EEOC.
Frustrations: Some stories on the internet, although unverified, illustrate the frustration employers have with the EEOC and its pro-employee viewpoint:
A sandwich shop employee began wearing a nose ring, which she said was a religious practice of a specific African religion. She did not comply with the employer’s request for documentation of the religious nature of the practice, and was terminated. The case went to trial and the jury found that the nose ring was not based on a sincerely held religious belief. Despite the verdict, the EEOC still wanted the trial judge to award punitive damages and issue an injunction against the employer due to the employer’s practice of asking employees for documentation supporting requests for religion-based waivers. The EEOC argued that requiring employees to prove that a practice is required by their faith is itself a violation of Title VII. The court denied that request.
In another case, the EEOC represented a Muslim woman who got a job operating printing equipment. Her loose-fitting clothing was considered to be a safety hazard by the employer who was concerned the clothing would get caught in a machine and cause her injury. The EEOC wanted the courts to have the employer compensate the woman for refusing to change her style of dress. In another case, the EEOC expected that an employee who had been off on FMLA for more than twelve weeks (the FMLA limit) should be granted additional personal leave and guaranteed the right to return to his former job. In some instances, extended leave of absence policies may give a disabled employee the right to return to their job after more than a year, according to the EEOC. What the EEOC views as a “reasonable accommodation” may be radically different from your view as the owner of a business.
What should you do if your business receives a notice of a charge of discrimination from the EEOC?
First of all, you will need to get organized and provide a thorough response within the assigned deadline. Under the EEOC’s new efforts to expedite processing, it may be more difficult to get extensions if deadlines are missed. Keep in mind that this initial request for information is not a lawsuit. Rather, an individual has accused your company of violating the law and the EEOC is investigating whether there is reasonable cause to believe the charges. A carefully crafted response to this initial request could help you avoid a costly lawsuit down the road. The initial EEOC notification may contain just a few short paragraphs relating to the alleged incident. Don’t be misled by the brevity of the initial statement. A comprehensive response may be your best option at that time. It is wise to consult with a human resources professional or an attorney to develop your written response. In responding, be as detailed as possible in presenting the facts and circumstances surrounding the allegation, while taking great care to avoid any choice of words that the EEOC might find offensive. Thus, an overly long response can backfire. It is recommended to explain the reasons why the company acted in the manner in which it did. One way to thwart subsequent litigation is to convince the EEOC investigators that there were valid and justifiable business reasons for your actions. In doing so, it may be beneficial to share a few details about your business that are not commonly known. These aspects of your operation may help justify why a valid termination occurred. For example, it may be critical for your operation to have a customer service desk fully staffed at all times. If you fire or discipline a worker who is habitually tardy or failed to stay at the desk without a good excuse, you can demonstrate how this impacts your business. Don’t assume that the EEOC can make the connection between an employee’s termination, and the behaviors that caused it.
Supporting documentation should be used to provide evidence of your written explanation. Written records can be in the form of emails, attendance records, disciplinary action, portions of company handbooks, manuals, etc. Make copies of all the relevant records, to ensure that these will be available later knowing that EEOC investigations and legal cases can often last more than a year. Ensure that the accuracy of statements is verified by other employees who do not have a vested interest in the outcome. Using precedents can be an effective tool in convincing the EEOC that you did not illegally discriminate. It is a good strategy to give examples where you consistently used the same approach for all employees. For example, if you terminated an African-American employee for certain acts of misconduct and the employee claims race discrimination, document other instances where Caucasian employees were terminated for the same or similar acts.
Check your company’s insurance policies. Sometimes, your business insurance will cover claims relating to employment practices. One such type of coverage is called Employment Practices Liability Insurance, aka EPLI. Generally, these types of policies require you to notify the insurance company at the first threat of a claim. If you don’t act soon enough, the coverage may be denied. These policies usually have a deductible, which could be $2500 or higher. There could also be cost sharing, such as 80/20 where the business would be required to pay 20% of all legal and settlement costs. This puts the owner in the awkward position of deciding whether to make a claim on the insurance policy, or handle the situation themselves. Notifying the insurance company could mean that the insurance company could take over control of the case and the settlement of it, resulting in a sizable expense to the business that was outside of the owner’s control. The legal department of the insurance company may ask for a sizable retainer, which could end up being a front end expense equal to your full deductible amount. With decisions to be made, it is recommended that you protect your company’s best interests from the outset and obtain legal assistance in preparing your written responses to the EEOC. An attorney or human resources professional can interview witnesses and assemble relevant documentation.
Another reason to consult professionals is that retaliation or discrimination claims are sometimes interrelated to workers compensation claims, FMLA claims, or Americans with Disabilities Act claims. Even if the EEOC does not find clear evidence of discrimination, the investigation and legal proceedings could uncover violations of other state or federal laws, leading to a civil lawsuit being filed against your company, anyway. Quite often, there is a threat of an EEOC claim (or a strong hint of a pending claim), prior to the time when the employee files the charge formally with the EEOC. Paying attention to signs of a potential claim can help you address situations internally for a positive outcome affecting your business and the employees. There may be an opportunity to mediate, formally or informally, with the employee to resolve the issue prior to the employee filing a complaint with the EEOC. Consulting with an attorney can help determine whether a private agreement or settlement with an employee is legally enforceable if the employee or employer subsequently takes further action.
Don’t retaliate! If an employee files a charge of discrimination, or even threatens to file, you must be careful to avoid any actions that the EEOC might construe as retaliation against the employee, witnesses, or co-workers. Retaliation is a charge that is related to discrimination, but is considered a separate offense. Obvious types of retaliation might include suspension, demotion, termination, or harassment. Less obvious types of retaliation could be change of schedules, work assignments, isolation, moving someone’s office, ‘cold shoulder’ treatment, etc. When interacting with individuals affected by claims or potential claims, it is best to document the bona fide reasons for the actions taken. Attempting to dissuade someone from pursuing their case violates Title VII and an employer can be liable for damages including compensatory and punitive damages. Retaliation is a separate cause of action under Title VII. If the retaliation is severe and could serve to hamper the EEOC investigation, EEOC can seek a preliminary injunction in federal court barring the retaliatory activity. Federal actions can become public record, and could be further evidence against an employer in a civil trial. Don’t destroy evidence! Under federal law, once you know a charge has been filed, you must maintain your records. Destruction of evidence and failure to maintain records violates Title VII.
Furthermore, discrimination and retaliation cases can sometimes be picked up by the media and reported as stories of general interest to the public. This is likely to happen if your case becomes a lawsuit by the EEOC. Your company certainly doesn’t need that kind of negative media attention. Another risk is that other unknown ‘victims’ could come forward to file new charges of discrimination against your company, multiplying your problems. Cooperating with the Investigation: The EEOC has broad powers under Title VII of the Civil Rights Act of 1964, to ask for all relevant information, documents, access to witnesses, visits to worksites, etc. If you don’t cooperate, the EEOC can issue an administrative subpoena. If you don‘t comply, EEOC can file a lawsuit in federal court to enforce the subpoena. The EEOC is usually successful in getting the information they need. It is best to cooperate with the EEOC investigator and provide the necessary information without delay. If you need more time to compile the information, you can ask for an extension but it may not always be approved. Remember that the investigation stage is your chance to get the company’s version before the EEOC. The EEOC works as a fact finder at that stage. The EEOC only finds “cause” in about 10% of the charges filed nationwide.
If the EEOC issues a finding of discrimination (in a Letter of Determination) you should seriously consider an EEOC invitation to conciliate the case. Conciliation is the last chance to settle a matter with the EEOC confidentially and without a lawsuit. Make a reasonable offer. Remember most cases settle when they reach conciliation. The money, attorney fees, time, and stress involved in litigation will outweigh the amount spent in conciliation. Don’t miss the deadline or disregard the EEOC. Don’t ask for mediation as a substitute for conciliation. If the case doesn’t settle in conciliation, the case is forwarded to the Regional Attorney for litigation review.
Supporting documentation should be used to provide evidence of your written explanation. Written records can be in the form of emails, attendance records, disciplinary action, portions of company handbooks, manuals, etc. Make copies of all the relevant records, to ensure that these will be available later knowing that EEOC investigations and legal cases can often last more than a year. Ensure that the accuracy of statements is verified by other employees who do not have a vested interest in the outcome. Using precedents can be an effective tool in convincing the EEOC that you did not illegally discriminate. It is a good strategy to give examples where you consistently used the same approach for all employees. For example, if you terminated an African-American employee for certain acts of misconduct and the employee claims race discrimination, document other instances where Caucasian employees were terminated for the same or similar acts.
Check your company’s insurance policies. Sometimes, your business insurance will cover claims relating to employment practices. One such type of coverage is called Employment Practices Liability Insurance, aka EPLI. Generally, these types of policies require you to notify the insurance company at the first threat of a claim. If you don’t act soon enough, the coverage may be denied. These policies usually have a deductible, which could be $2500 or higher. There could also be cost sharing, such as 80/20 where the business would be required to pay 20% of all legal and settlement costs. This puts the owner in the awkward position of deciding whether to make a claim on the insurance policy, or handle the situation themselves. Notifying the insurance company could mean that the insurance company could take over control of the case and the settlement of it, resulting in a sizable expense to the business that was outside of the owner’s control. The legal department of the insurance company may ask for a sizable retainer, which could end up being a front end expense equal to your full deductible amount. With decisions to be made, it is recommended that you protect your company’s best interests from the outset and obtain legal assistance in preparing your written responses to the EEOC. An attorney or human resources professional can interview witnesses and assemble relevant documentation.
Another reason to consult professionals is that retaliation or discrimination claims are sometimes interrelated to workers compensation claims, FMLA claims, or Americans with Disabilities Act claims. Even if the EEOC does not find clear evidence of discrimination, the investigation and legal proceedings could uncover violations of other state or federal laws, leading to a civil lawsuit being filed against your company, anyway. Quite often, there is a threat of an EEOC claim (or a strong hint of a pending claim), prior to the time when the employee files the charge formally with the EEOC. Paying attention to signs of a potential claim can help you address situations internally for a positive outcome affecting your business and the employees. There may be an opportunity to mediate, formally or informally, with the employee to resolve the issue prior to the employee filing a complaint with the EEOC. Consulting with an attorney can help determine whether a private agreement or settlement with an employee is legally enforceable if the employee or employer subsequently takes further action.
Don’t retaliate! If an employee files a charge of discrimination, or even threatens to file, you must be careful to avoid any actions that the EEOC might construe as retaliation against the employee, witnesses, or co-workers. Retaliation is a charge that is related to discrimination, but is considered a separate offense. Obvious types of retaliation might include suspension, demotion, termination, or harassment. Less obvious types of retaliation could be change of schedules, work assignments, isolation, moving someone’s office, ‘cold shoulder’ treatment, etc. When interacting with individuals affected by claims or potential claims, it is best to document the bona fide reasons for the actions taken. Attempting to dissuade someone from pursuing their case violates Title VII and an employer can be liable for damages including compensatory and punitive damages. Retaliation is a separate cause of action under Title VII. If the retaliation is severe and could serve to hamper the EEOC investigation, EEOC can seek a preliminary injunction in federal court barring the retaliatory activity. Federal actions can become public record, and could be further evidence against an employer in a civil trial. Don’t destroy evidence! Under federal law, once you know a charge has been filed, you must maintain your records. Destruction of evidence and failure to maintain records violates Title VII.
Furthermore, discrimination and retaliation cases can sometimes be picked up by the media and reported as stories of general interest to the public. This is likely to happen if your case becomes a lawsuit by the EEOC. Your company certainly doesn’t need that kind of negative media attention. Another risk is that other unknown ‘victims’ could come forward to file new charges of discrimination against your company, multiplying your problems. Cooperating with the Investigation: The EEOC has broad powers under Title VII of the Civil Rights Act of 1964, to ask for all relevant information, documents, access to witnesses, visits to worksites, etc. If you don’t cooperate, the EEOC can issue an administrative subpoena. If you don‘t comply, EEOC can file a lawsuit in federal court to enforce the subpoena. The EEOC is usually successful in getting the information they need. It is best to cooperate with the EEOC investigator and provide the necessary information without delay. If you need more time to compile the information, you can ask for an extension but it may not always be approved. Remember that the investigation stage is your chance to get the company’s version before the EEOC. The EEOC works as a fact finder at that stage. The EEOC only finds “cause” in about 10% of the charges filed nationwide.
If the EEOC issues a finding of discrimination (in a Letter of Determination) you should seriously consider an EEOC invitation to conciliate the case. Conciliation is the last chance to settle a matter with the EEOC confidentially and without a lawsuit. Make a reasonable offer. Remember most cases settle when they reach conciliation. The money, attorney fees, time, and stress involved in litigation will outweigh the amount spent in conciliation. Don’t miss the deadline or disregard the EEOC. Don’t ask for mediation as a substitute for conciliation. If the case doesn’t settle in conciliation, the case is forwarded to the Regional Attorney for litigation review.
Finding of "Cause"
If the EEOC finds “insufficient evidence” of a violation or if the EEOC found “cause” but did not sue, the case might not end there. The charging party can still file suit in state or federal court. The employee has 90 days to file suit in federal court after receiving the EEOC Notice of Right to Sue. Case law states that the employee has one year to file suit on her state claims in federal court. When charging parties file suit or intervene in the EEOC’s lawsuit, the company could be liable for private attorney fees. The EEOC also has authority to intervene in a charging party’s lawsuit.
Training: Train your staff regularly on the laws against employment discrimination. How much training you provide or didn’t provide, will generally be a factor in the issue. Make sure top managers and all supervisors take these laws and the training seriously. The EEOC has concluded that many of the cases could have been prevented if management conducted training, held managers accountable, and disciplined those who didn’t follow the rules. Businesses often times held responsible for the actions of their managers and team members, so it is critical that all managers be trained on the appropriate way to deal with these types of issues.
Another way to reduce the risk of severe claims is to use a human resources outsourcing partner, such as a PEO (professional employer organization). A PEO becomes a co-employer of the worksite employees, and takes on part of the employment risk. Some PEO’s carry Employment Practices Liability Insurance, and most provide assistance in responding to EEOC notices. In contracting with an HR firm, or PEO, you should ask specific questions about how the organization would support your company in areas of EEOC compliance. This article is for educational purposes only, and is not intended to substitute for the advice of legal counsel.
Training: Train your staff regularly on the laws against employment discrimination. How much training you provide or didn’t provide, will generally be a factor in the issue. Make sure top managers and all supervisors take these laws and the training seriously. The EEOC has concluded that many of the cases could have been prevented if management conducted training, held managers accountable, and disciplined those who didn’t follow the rules. Businesses often times held responsible for the actions of their managers and team members, so it is critical that all managers be trained on the appropriate way to deal with these types of issues.
Another way to reduce the risk of severe claims is to use a human resources outsourcing partner, such as a PEO (professional employer organization). A PEO becomes a co-employer of the worksite employees, and takes on part of the employment risk. Some PEO’s carry Employment Practices Liability Insurance, and most provide assistance in responding to EEOC notices. In contracting with an HR firm, or PEO, you should ask specific questions about how the organization would support your company in areas of EEOC compliance. This article is for educational purposes only, and is not intended to substitute for the advice of legal counsel.