EEOC Enforcement Report Reveals Significant Drop in Charges

EEOC Enforcement Report Reveals Significant Drop in Charges

While New Jersey employers should probably keep the champagne on ice, the Equal Employment Opportunity Commission’s (EEOC) latest enforcement report is good news. The agency reports that both employment claims and penalties dropped significantly in fiscal year 2014, which ran from Oct. 1, 2013, to Sept. 30, 2014.

In total, the EEOC filed 133 lawsuits on the merits, which represent a slight uptick over last year. However, the agency’s litigation docket remains low. By comparison, the EEOC filed an average of 370 lawsuits a year from 1997 to 2011. Monetary relief from litigation, including settlements, also decreased. Overall, the agency obtained $22.5 million, which represents the lowest payout in more than 15 years.

In recent years, the EEOC has placed greater emphasis on administrative proceedings. However, these recoveries also dropped. The EEOC obtained $296.1 million in total monetary relief through its enforcement program prior to the filing of litigation. In 2013, administrative settlements totaled $372.1 million, while it was $365.4 million in 2012.

In New Jersey, 1,613 charges were filed, which also represents a slight decrease from FY 2013. With regard to the types of charges filed, race, sex, and disability discrimination charges all declined, while retaliation claims continued to increase. Below is a breakdown of the EEOC charges filed in the state, which largely track national data in terms of rankings:

• Retaliation under all statutes: 609 (23.7 percent of all charges filed)
• Race (including racial harassment): 544 (21.2 percent)
• Disability: 416 (16.2 percent)
• Age: 385 (15.0 percent)
• Sex (including pregnancy and sexual harassment): 378 (14.7 percent)
• National origin: 237 (9.2 percent)

According to the EEOC, the government shutdown partially contributed to the dip in charges and penalties, but does not fully explain the downward trend. Of course, the agency reaffirmed its commitment to “strategic enforcement to eliminate barriers to equal employment opportunity.” Accordingly, New Jersey employers should continue to make compliance a top priority, particularly with respect to anti-retaliation policies and procedures.