How Does an EEOC Complaint Hurt an Employer?

In 2023, the Equal Employment Opportunity Commission (EEOC) helped employees recover more than $665 million in damages for over 22,000 cases of discrimination. That’s over $30 million for each case!

From a strictly bottom-line perspective, discrimination in your workplace just doesn’t do your business any good. Aside from potential EEOC investigations and legal penalties, discrimination leads to higher turnover rates and lowers everyone’s productivity, not just the people being discriminated against.

Of course, preventing EEOC complaints and investigations isn’t just about protecting the business. Your people deserve a safe, inclusive place to work, and that’s why the EEOC exists.

Read on to learn more about what the EEOC does, what to expect from an investigation, and key strategies to build the kind of workplace where everyone can thrive.

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What does the EEOC do?

The EEOC enforces laws that make it illegal to discriminate against a job applicant or employee based on:

The EEOC also works to prevent discrimination before it occurs, through outreach and education.

Businesses must follow equal employment laws if they have 15 or more employees—or 20 employees and over for age discrimination issues.

Frequently asked questions about EEOC complaints

What is the most common eeoc complaint?

The most common EEOC complaint is due to retaliation. In a number of cases, the original discrimination allegation doesn’t establish a law violation, but the following retaliation results in a finding. A manager can’t fire, demote, or harass an employee for filing a discrimination case.

What’s classed as discrimination at work?

Employment discrimination happens when an employee is treated less favorably because of their race, color, religion, sex, sexual orientation, gender identity, national origin, or veteran status.

It can also occur if an employee is disciplined after discussing or asking about pay.

How serious is an EEOC complaint?

The severity of an EEOC investigation depends on the facts of the case, but an employer may face serious consequences following an EEOC ruling, including:

Can an EEOC complaint legally hurt a business?

Yes, employees can take legal action against their employer through the EEOC. They can use the public portal to submit an enquiry and schedule an appointment, where the EEOC can help determine if they’re the right agency to handle the complaint.

Can an employee file an EEOC complaint after quitting?

Any individual who believes that their employment rights have been violated can submit a discrimination complaint with the EEOC. This may include former employees, applicants or current employees that work part-time or full-time.

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What can you expect once an EEOC complaint is filed?

If a charge has been filed against you as an employer, you’re called the respondent, and the EEOC will notify you within 10 days. You can then log on to the EEOC’s portal through an online link to view the charge and receive messages about the investigation.

At the start of the EEOC investigation process, you’ll be informed if mediation or settlement is an option, or you can ask your investigator. As the investigation unfolds, both the respondent and the charging party (person who made the complaint) will need to give information.

If you’re the employer involved in a EEOC case, you may be asked to do the following:

Submit a statement of position

It’s your responsibility as the respondent to tell your side of the story. This is also your chance to raise factual or legal defenses. The EEOC provides a resource on effective position statements.

Respond to the request for information (RFI)

You’ll need to acknowledge the request for information and provide information. This may be in the form of personnel policies, personnel files of the charging party, and other individuals involved.

Allow an on-site visit

An on-site visit may be needed to help the EEOC get the facts. Sometimes an on-site visit is used instead of an RFI if the requested information can be viewed. Site visits can also make it faster to reach resolutions.

Provide contacts for witness interviews

Have contact information for employees available for witness interviews. The EEOC can interview non-management-level employees with the presence or permission of the employer.

What is a typical EEOC investigation timeline?

The time limit for filling a charge is usually 180 calendar days from the date the discrimination took place. Depending on the location and circumstances, it can be extended to 300 days.

A typical EEOC investigation timeline can take around 10 months. In 2023, the average time it took for the EEOC to investigate and resolve a charge was 11 months, but the timeframe varies on a case-by-case basis.

If the EEOC can settle through mediation, the timeframe can be as short as three months.

Here are the 7 steps in the investigation timeline:

  1. Complaint filing: The employee, or charging party, files the complaint.
  2. Employer notification: Next, the EEOC will contact the employer and notify them of the complaint within 10 days. They’ll send a link to the employer allowing access the Respondent’s Portal.
  3. Mediation and/or settlement: The EEOC may offer both parties the opportunity to engage in mediation or reach a settlement. These are voluntary processes and either party can refuse. In some cases, the EEOC investigation process can conclude here.
  4. Written statement: If a mediation or settlement hasn’t been reached, the employer will then submit a statement of position.
  5. Respond to Request for Information: The employer may need to provide further information.
  6. Witness Interviews: The EEOC investigation may include interviews of witnesses, as well as the Charging Party.
  7. Completion and outcome: Once the EEOC investigation process has finished, the agency will determine if there is ‘reasonable cause’ to believe the discrimination took place.

what is the EEOC investigation process, and what are the potential outcomes?

Once the EEOC investigation process has finished, there are three main outcomes that can occur.

  1. Dismissal and notice of rights: If the EEOC can’t find reasonable cause to think that discrimination occurred, the Charging Party will be served a Dismissal and Notice of Rights. The notice closes the case and informs the Charging Party that they have the right to file a lawsuit within 90 days.
  2. Letter of determination: If the EEOC does believe that discrimination has occurred, both parties will receive a Letter of Determination. It’ll invite the parties to join the agency in seeking a resolution through conciliation.
  3. Notice of right to sue: If conciliation doesn’t resolve the charge, the EEOC can file a lawsuit in federal court. If the EEOC doesn’t litigate, the charging party may receive a Notice of Right to Sue letter and can file a lawsuit in federal court within 90 days.

Preparing for the EEOC investigation

The EEOC investigation process can be a stressful time for all parties involved. As the respondent, there are some things to bear in mind to make the process as smooth as possible.

Here are some tips for navigating the EEOC investigation process:

How can HR professionals help prevent EEOC complaints?

It’s your responsibility to keep your employees safe and protect them from discrimination or unfair treatment. Employment laws shouldn’t just a box-checking exercise—you should actively work to cultivate an inclusive and safe environment for all future or current employees.

To avoid potential EEOC damages, you should look to train HR managers and people leaders on EEO laws and encourage a strong company policy against discrimination

Ensure that you:

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