Equal Employment Opportunity Commission (EEOC)

What Is the EEOC?

EEOC stands for Equal Employment Opportunity Commission. The federal agency was created in 1965 to enforce Title VII of the Civil Rights Act of 1964, which prohibits on-the-job harassment and employment discrimination due to one’s race, color, religion, sex, national origin, age, disability, or genetic information. The agency’s authority has since expanded to enforce other discrimination-related laws.

According to the EEOC, rules against sex-related discrimination include pregnancy, childbirth (and related conditions), gender identity, and sexual orientation. Age discrimination regulations cover those above the age of 40.

The laws enforced by the EEOC cover any employment activity, from recruiting and hiring to advancement, training, evaluation, compensation, and termination.

The EEOC investigates discrimination complaints, enforces corrective actions, and brings lawsuits against employers failing to comply. However, those asking, “What is EEOC’s ultimate goal?” may be surprised to learn that the agency wants to do more than simply react to wrongdoing; they aim to proactively stop discrimination.

For this reason, the EEOC also provides technical assistance and education to employers trying to follow the law in good faith, as well as leadership and guidance to federal agencies to ensure compliance.

Which Businesses Are Subject to EEOC Regulations?

According to the EEOC, most businesses with at least 15 employees are subject to EEOC regulations. Part-time employees can be counted as long as they meet certain criteria, and in some cases, multi-site businesses can count all employees across all worksites together. Independent contractors and other non-employees who perform work for the employer will not count toward EEOC employee count requirements.

EEOC laws cover individuals whether they’re currently employed, formerly employed, applying for employment, or participating in an apprenticeship program. The agency does have stipulations for coverage based on what category the employer falls into.

Here are four basic employer categories and the criteria each must meet for EEOC coverage.

Private Employers

Private businesses with 15 or more employees who have worked for the employer for at least 20 calendar weeks in the current or previous year are subject to EEOC regulations. In order to be subject to age discrimination regulations, the private business must have at least 20 employees.

There are no employee count requirements for coverage under the Equal Pay Act. US employers operating overseas are subject to the same regulations.

Government Agencies

State or local agencies with 15+ employees who have worked for the agency for at least 20 calendar weeks in the current or previous year are covered by EEOC rules.

However, there is no employee count threshold for age discrimination or Equal Pay Act complaints and enforcement. All federal agencies, regardless of how many employees they have, are covered by EEOC regulations.

Employment Agencies

All employment agencies, regardless of employee count, are subject to EEOC regulations as long as they regularly refer employees to employers. This coverage exists regardless of whether there is any payment exchanged for referral services.

The EEOC prohibits an employment agency from discriminating against its own employees or employees it refers. Additionally, these businesses cannot honor discriminatory requests from employers.

Employment agencies also cannot categorize or group employees or base referral decisions on unfair categorizations (e.g., only referring cisgender women to office jobs).

Labor Unions

EEOC laws apply to organizations that operate a hiring hall or have 15+ members. Labor unions may not engage in discrimination as employers, bargaining representatives, or referral agencies. This includes denying membership to individuals based on certain criteria. Age discrimination regulations cover unions that either operate a hiring hall or have 25+ members.

Federal Laws Enforced by the EEOC

The EEOC is responsible for enforcing all federal laws prohibiting harassment and discrimination in the workplace. The following are the major laws that fall under the agency’s umbrella.

Title VII of the Civil Rights Act of 1964

This portion of the law prohibits workplace discrimination on the basis of race, color, religion, national origin, or sex. The Pregnancy Discrimination Act amended Title VII to make it illegal to discriminate against an individual based on pregnancy, childbirth, or a related medical condition.

The Civil Rights Act of 1991 further amended the law to permit jury trials and punitive and compensatory damage awards in discrimination cases. Under this law, employers must reasonably accommodate applicants and employees practicing sincerely held religious beliefs.

An employer is also prohibited from retaliating against any employee who complains about discrimination or participates in a legal investigation or case.

The Equal Pay Act of 1963

This law prohibits employers from paying men and women differently if they are doing the same job in the same workplace. As with most other laws enforced by the EEOC, the EPA also makes it illegal for employers to retaliate against those who file complaints, participate in investigations, or bring lawsuits related to workplace discrimination.

The Age Discrimination in Employment Act of 1967

The ADEA makes it illegal for employers to discriminate against individuals who are 40 years of age or older in hiring or employment practices. The Older Workers Benefit Protection Act amended the ADEA to offer equal benefits to older and younger employees.

This amendment also sets requirements for employers to ensure that employees over the age of 40 are making an informed choice when waiving their right to sue an employer for age discrimination, and in some cases, entitles these employees to additional severance pay when separating from a job.

The Americans With Disabilities Act of 1990 (Title I)

This law states that employers cannot discriminate against a qualified individual with a disability. Under this law, employers must also reasonably accommodate that person’s disability to allow them to perform job duties, participate in the application process, and enjoy the benefits of employment in a manner equal to employees without disabilities.

Sections 501 and 505 of the Rehabilitation Act of 1973 extend these same requirements and protections to those working for the federal government. Once again, employer retaliation for complaints or legal action is also illegal under the ADA.

The Genetic Information Non-Discrimination Act of 2008

This law makes it illegal for employers to request or require genetic information (information about genetic tests or family medical history) or discriminate against employees in any way because of this information.

Employers cannot use this information in making any employment decisions and cannot retaliate against those filing an EEOC claim or participating in legal cases in regard to these actions.

The Pregnant Workers Fairness Act of 2022

The PWFA gives qualified individuals with limitations due to pregnancy, childbirth, or related medical conditions the right to reasonable accommodations in the workplace.

All but four states already have protections for pregnant employees. The PWFA does not replace more protective state laws. Additionally, the law only covers accommodations, not discrimination.

What Is an EEOC Complaint?

An EEOC complaint, also known as a “charge of discrimination,” is a signed statement alleging that an employer or labor union has participated in discrimination in a way that requires corrective action from the EEOC. Appropriate charges of discrimination are always closely tied to an employer’s alleged violation of the law:

• An employer firing an employee with a disability after an accommodation request
• An employer refusing to interview or hire someone pregnant because the candidate may need to request time off later
• An employer allowing an employee to be mistreated by co-workers because of their age

The EEOC’s main goal in handling complaints is to stop discriminatory behavior in its tracks and create a more fair and equitable workplace for all.

How Does an EEOC Complaint Hurt an Employer?

EEOC complaints and charges of discrimination can hurt employers in a number of ways:

• Reputational damage or loss of trust with the public, which can negatively impact sales, talent acquisition, and the employer's brand
• The requirement to pay financial damages, such as back pay, front pay, court costs, or employment reinstatement
• Lengthy and invasive investigations and audits that require in-depth interviews and access to sensitive documents
• Unfavorable changes in company culture or employee sentiment

Clearly, the question of “How does an EEOC complaint hurt an employer?” doesn’t have just one answer. Complaints can have a domino effect of negative consequences, even if the agency doesn’t ultimately find any evidence of wrongdoing.

For this reason, employers should avoid discriminatory practices and address employee concerns immediately when they arise.