ARTICLE
11 February 2025

EEOC Issues Annual Report, Faces Future In Flux

SS
Seyfarth Shaw LLP

Contributor

With more than 900 lawyers across 18 offices, Seyfarth Shaw LLP provides advisory, litigation, and transactional legal services to clients worldwide. Our high-caliber legal representation and advanced delivery capabilities allow us to take on our clients’ unique challenges and opportunities-no matter the scale or complexity. Whether navigating complex litigation, negotiating transformational deals, or advising on cross-border projects, our attorneys achieve exceptional legal outcomes. Our drive for excellence leads us to seek out better ways to work with our clients and each other. We have been first-to-market on many legal service delivery innovations-and we continue to break new ground with our clients every day. This long history of excellence and innovation has created a culture with a sense of purpose and belonging for all. In turn, our culture drives our commitment to the growth of our clients, the diversity of our people, and the resilience of our workforce.
On January 17, 2024, just days before the new presidential term began, the Equal Employment Opportunity Commission published its annual performance report for the preceding Fiscal Year 2024.
United States Employment and HR

On January 17, 2024, just days before the new presidential term began, the Equal Employment Opportunity Commission published its annual performance report for the preceding Fiscal Year 2024. The Report highlights a year filled with notable monetary recoveries, an overall surge in new discrimination charges filed with the agency, and education and outreach initiatives. Soon after the Report was released, though, the EEOC was rocked by President Donald Trump's elevation of Commissioner Andrea Lucas to Acting Chair, the removal of Democratic Commissioners Charlotte Burrows and Jocelyn Samuels – causing the agency to lose the quorum necessary to conduct its most serious business, termination of General Counsel Karla Gilbride, and the release of directives that reverse some of the agency's long-held positions.1 The Report now becomes a measuring stick to observe how the EEOC's enforcement efforts do and do not change in response to these forces over the remainder of Fiscal Year 2025 and beyond.

EEOC Reports Unprecedented Recoveries and Rising Service Demands in FY 2024

The EEOC recently released its Annual Performance Report for FY 2024. The Report gives the EEOC an opportunity each year to showcase the results of its enforcement of federal anti-discrimination statutes and often is relied upon by the agency to bolster its requests for budget increases.

According to the Report, last year the EEOC secured nearly $700 million in monetary recoveries, benefitting about 21,000 claimants. This is the highest monetary recovery the EEOC has ever achieved. This unprecedented total includes $469.6 million for private sector and state/local government claimants, $190 million for federal workers and applicants, and over $40 million obtained through litigation.

The Report also highlights that the EEOC saw a significant increase in charge filings: there were 88,531 new charges filed in 2024, a 9.2% rise in filings from the previous fiscal year. What the EEOC touted as an achievement in the Report, however, may now become a burden. While the empty seats at the Commission should not affect how routine charges are processed, other Trump administration announcements, such as a hiring freeze and soliciting voluntary resignations, will almost certainly leave the EEOC with fewer resources to work through this inventory and its pre-existing backlog.

The Report also calls attention to the EEOC's litigation of claims that it identified as focus areas in its Strategic Enforcement Plan ("SEP"). For example, the EEOC filed five lawsuits under the Pregnant Workers Fairness Act (PWFA), which took effect in FY 2023 and which the EEOC has identified as an "emerging and developing issue." Likewise, the EEOC's SEP reiterated the agency's intent to file claims under the Americans with Disabilities Act (ADA), and in FY 2024 such claims represented more than 40% of the merits suits that were filed.

The Report includes multiple ways that the EEOC advanced the rights of LGBTQI+ individuals in FY 2023. Among those flagged by the EEOC: it filed four Title VII lawsuits that involved allegations of sexual orientation-based discrimination, and three that involved discrimination based on gender identity; ran a social media campaign on harassment prevention based on protected characteristics, including gender identity and sexual orientation; and conducted 246 LGBTQI+ outreach events, reaching 27,250 individuals. These efforts are a virtual certainty not to be repeated in the next few years, though. Acting Chair Lucas has announced that "the agency is returning to its mission of protecting women from sexual harassment and sex-based discrimination in the workplace," directed the removal of the "X" gender marker and "Mx." prefix for filing a charge of discrimination, and removed materials on LGBTQI+ worker protections and artificial intelligence-based discrimination from the Commission's internal and external websites.

Implications for Employers

Often, the EEOC's Annual Report provides a preview of what is to come. In this instance, it is more likely to serve as a time capsule of a different time at the EEOC. Nonetheless, employers should remember that the EEOC will continue to investigate charges filed with it, and to take matters to enforcement where warranted. Employers should continue the blocking and tackling of publishing non-discrimination and anti-harassment policies to their employees and providing training on how to stay in compliance with those laws. In the meantime, we will continue to monitor changes and report on new trends and developments at the agency.

Footnote

1 See Rachel See and Andrew Scroggins, Trump Fires EEOC Commissioners, Testing Constitutional Limits on Presidential Power Over Independent Agencies, Workplace Class Action Blog (Jan. 29, 2025), https://www.workplaceclassaction.com/2025/01/trump-fires-eeoc-commissioners-testing-constitutional-limits-on-presidential-power-over-independent-agencies/.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More