EEOC lowers its sights -- and you could be caught in the crosshairs

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Dear HR Professional:

Employment lawyer Mindy Chapman uses a popcorn metaphor to illustrate the EEOC’s current enforcement strategy:

Instead of confining itself to discrimination cases where the stakes are in the millions of dollars – or even the high hundreds of thousands – the agency is now pursuing lots of smaller cases. Settlements may be in the $40,000-$90,000 range. Together, these “popcorn-sized” amounts make a big bowl.

August 2009’s three-week total of $3.9 million included settlements of $44,700; $26,250; $45,000; $84,750; $57,500; and $30,000.

It's not just the money
Hits of this size are unlikely to bankrupt most employers, especially if they’re insured against such liability.

But as Chapman notes, no matter how big a settlement is, the impact is the same in terms of the distraction from normal business, the negative impact on organizational culture, and the bad publicity.

Moreover, a typical settlement of an EEOC lawsuit doesn’t mean only an immediate cash hit. It can also mean major intrusions on the way you do business, for up to five years. Chapman calls these burdens “salt” – on popcorn, or on a wound.

Laundry list
Here are a few of the things the EEOC can demand you do as part of a settlement:

• provide annual EEO training to your entire workforce
• rewrite and distribute EEO policies
• hire a full-time diversity officer 
• consent to surprise visits by an EEOC monitor at any time 
• submit compliance reports every 30, 60, or 90 days, and 
• set up an independent, toll-free hotline for bias complaints.

Does HR want to complicate its life like this? Didn't think so. That leaves you with one choice: Make sure you have a strong anti-discrimination policy and let line managers know helping you enforce it is a big part of their job.

Dave Clemens
Editor-in-Chief
HR Rapid Learning Center

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