How Employers Can Protect Themselves Against Employment Lawsuits: Steps to Take When Facing an EEOC Charge

As an employer, the prospect of an employee filing a lawsuit can be daunting. In fact, there are many types of potential employment lawsuits that an employee can file, ranging from discrimination and harassment to wage and hour claims. One entity that often gets involved in such cases is the Equal Employment Opportunity Commission (EEOC), the government agency tasked with enforcing federal laws that prohibit workplace discrimination.

The EEOC can initiate a lawsuit on behalf of an aggrieved employee or group of employees. Statistically speaking, when the EEOC brings a case, the odds are stacked in its favor. The EEOC wins approximately 96% of the cases it initiates. With the most common charge being retaliation, it’s crucial for employers to understand how to protect themselves when facing a Charge of Discrimination before the EEOC.

The Most Common Type of Case: Retaliation

Retaliation claims have emerged as the leading type of charge filed with the EEOC. According to the EEOC’s 2023 charge statistics, retaliation accounted for 56.3% of the total charges filed. Retaliation occurs when an employer takes an adverse action against an employee for engaging in protected activity, such as filing a complaint of discrimination or participating in an investigation. This can include things like firing, demoting, or harassing an employee for speaking out.

Steps Employers Should Take When Facing an EEOC Charge

While retaliation claims are the most common, any charge filed with the EEOC should be taken seriously. If you find yourself facing a Charge of Discrimination, here are some critical steps to help protect your business and mitigate the risk of litigation:

1. Act Quickly and Consult Legal Counsel

As soon as you receive a Charge of Discrimination from the EEOC, it’s crucial to act promptly. The charge will outline the nature of the allegations and often comes with a deadline to respond. Consulting with legal counsel is essential at this stage. An experienced employment attorney can help you understand the legal implications, guide you through the process, and develop a response strategy.

2. Conduct a Thorough Internal Investigation

Before responding to the EEOC, it’s critical to conduct a thorough internal investigation into the allegations. This investigation should include interviews with relevant employees, a review of company policies and practices, and an assessment of whether there were any breaches of workplace policies. Document your findings carefully, as this will be a key component of your legal defense.

3. Review Your Retaliation Policies

If the charge involves retaliation, make sure your retaliation policies are robust and consistently applied. All employees, especially managers, should be trained on what constitutes retaliation and how to handle complaints or reports of discrimination. Ensure that employees feel safe reporting issues without fear of adverse consequences.

4. Craft a Strong Response to the EEOC

The EEOC will allow you to submit a written response to the Charge of Discrimination. Your response should include your investigation findings, supporting documents, and any evidence that refutes the claim. In retaliation cases, it’s critical to provide evidence of legitimate, non-retaliatory reasons for any actions taken against the employee.

5. Consider Early Resolution Options

In many cases, the EEOC will attempt to resolve the matter through mediation or conciliation. While these methods can be an effective way to settle disputes without going to court, it’s essential to weigh the benefits and risks of settlement. Early resolution can save you time and legal costs, but ensure you are making decisions that align with your company’s best interests.

6. Prepare for the Possibility of Litigation

If the EEOC decides to move forward with litigation, it’s important to have your defense strategy ready. As previously mentioned, the EEOC has a high success rate in litigation, so preparing a strong legal defense early is essential. This might include gathering additional evidence, expert witness testimony, or alternative dispute resolution methods.

Why Prevention is Key: Take Steps Before a Charge is Filed

One of the best ways to protect your business is by preventing issues before they arise. By creating a culture of compliance and respect in the workplace, employers can reduce the risk of claims and avoid expensive litigation. Here are a few best practices:

  • Train Employees and Managers Regularly: Ensure employees and management are trained on workplace discrimination, harassment, and retaliation laws. Regular training can help prevent inadvertent violations.
  • Establish Clear Anti-Retaliation Policies: A comprehensive anti-retaliation policy should be in place to ensure that employees understand that retaliation will not be tolerated.
  • Promote Open Communication: Encourage employees to voice concerns early and without fear of retaliation. Offering a safe and accessible reporting system can help resolve potential issues before they escalate.

Conclusion

Facing a Charge of Discrimination from the EEOC can be overwhelming for employers. However, with the right approach, you can minimize the risk of costly litigation and ensure a fair resolution. Retaliation charges, in particular, are serious and common, but by taking proactive steps—such as conducting internal investigations, consulting legal counsel, and implementing strong policies—employers can better protect themselves and their businesses.

For more resources and guidance on dealing with employment discrimination claims, visit the EEOC website at www.eeoc.gov

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