Litigation risks are being seriously overstated by the EEOC, and employers are being misled into huge monetary settlements, a former EEOC lawyer has revealed
More than 650 employers have responded, and in the past two years:
- 59.5% said the EEOC implied that there was serious risk of an investigation into systemic discrimination
- With 71.4% of employers, the EEOC implied there was serious risk of investigation into cause determination
- And 80.32% said the EEOC implied there was serious risk of cost of dispense
“They are trained to tell employers what might happen. …but they don’t say ‘we really only issue cause determinations on a very small number of charges’,” Archer said. “In reality if it doesn’t resolve in mediation a lot of times the EEOC dismisses the charge without taking any further action on it.”
“It looks to me like they’re saying these things because employers will freak out and pay more money to get it done without realizing that what they’re being told is exaggerated,” she said.
The last time the EEOC conducted a publicly released study on its mediation program was in 2003.
The EEOC did not respond to requests for comment or verification of statistics by time of publication, but HRM America will continue to pursue the story.
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