The Equal Employment Opportunity Commission (EEOC) enforces federal laws against workplace discrimination. In many cases, the EEOC will rule on a complaint from an employee about topics like wrongful termination and harassment. But just because the EEOC may not file charges against a company does not mean it is in the clear.
That's a confusing fact that many people misunderstand. The EEOC has 180 days to investigate the claim from when it was filed. If the EEOC decides not to litigate, the charging party will receive a Notice of Right to Sue. Although this typically signals the end of the EEOC's investigation and involvement, the business is still at risk of being sued by the charging party, who has 90 days to file a lawsuit in federal court.
While claims of discrimination, harassment and retaliation are nothing new, the costs associated with them are soaring. According to the EEOC, the average total claim cost in 2017 was $460,000. Settlement payments averaged $160,000 while defense costs averaged $300,000.
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