EEOC-Initiated Lawsuits Shot Up 52% in Latest Fiscal Year

The Equal Employment Opportunity Commission (EEOC) filed 143 discrimination lawsuits in its just-completed fiscal year—a 52 percent increase from the 94 reported last year. And employment attorneys predict that the agency this spike in activity will continue.

Of the suits the EEOC filed in the year ending September 30, 2023, 25 alleged systemic discrimination. The one grabbing the most headlines was a September 28 case accusing Tesla of “pervasive” discrimination against Black workers at its Fremont, California, factory. Tesla didn’t respond to reporters’ inquiries but generally denies discriminatory practices.

The EEOC said the systemic-case count was the largest it has filed in the past five years. Of the remaining cases, 32 sought relief for multiple harmed parties, while 86 sought relief for an individual.

Expect even more cases in fiscal 2024, employment attorneys say, now that the five-member commission is under Democratic control for the first time since President Joe Biden took office in January 2021. The commission finally broke a 2-2 deadlock when the Senate confirmed Kalpana Kotagal in July, more than a year after Biden nominated her. Biden has cast himself as a champion of worker rights, a philosophy he’s carried through all major federal regulatory agencies.

“The edict is ‘We want to do everything within our power to prevent discrimination of any sort or any unfair treatment of employees,’” said Mara Levin, a Blank Rome partner.

Littler Mendelson shareholder Bradford Kelley agreed, saying, “The EEOC is looking for opportunities which they can tout as a success for them,” he said. “[This lawsuit data] does show that they’re going to continue to focus on their strategic plans.”

The EEOC’s strategic plan through 2026 includes focusing on eliminating systemic barriers to equal opportunity in the workplace, improving follow-up to ensure employer compliance with training and other remedial actions stipulated in settlements, and promotion of best practices that help employers avoid discriminatory practices.

Employment attorneys say another area likely to receive increased attention is artificial intelligence (AI) bias in employee hiring. The EEOC in August settled its first AI-bias case, accepting $365,000 from the international tutoring company iTutorGroup. In a 2022 lawsuit, it accused the firm of automatically disqualifying female candidates over age 55 and male candidates over age 60.

Other major deals struck in the past year included an $8 million settlement with the convenience store giant Circle K to resolve pregnancy-discrimination allegations nationwide, and a $2 million settlement with a McDonald’s franchisee that owns 18 restaurants in the West to resolve allegations of systemic sexual harassment.

From: Corporate Counsel