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July 29 2014

Some Employers Likely to See Increased Litigation Costs in EEOC Cases

Employers in Indiana, Illinois, and Wisconsin are likely to see their legal fees increase as a result of a Seventh Circuit decision that allows the EEOC to file suit immediately instead of first trying to negotiate a settlement with the employer. The court held that Title VII of the Civil Rights Act of 1964 does not contain an affirmative defense for employers to use against the EEOC during litigation. As a result, the EEOC does not have to concern itself with good-faith conciliation. It can go to the negotiation table with take-it-or-leave-it settlement offers, and employers have no recourse.