EEOC Fiscal Year-End Filings Eerily Quiet: Litigation Fizzle Or Calm Before The Storm?

By: Christopher J. DeGroff, Sarah K. Bauman, and James P. Nasiri

Seyfarth Synopsis: Very last yr was one particular of adjust and recovery for the EEOC as a end result of the pandemic and new leadership.  With the new leadership regime and structural modifications at the EEOC arrived an uptick in filings from FY 2021, with virtually 50 percent of all those happening in the thirty day period of September by yourself.  Irrespective of an expected busy 12 months for 2022, this fiscal calendar year closed with a strikingly small number of filings,and leaves questions as to regardless of whether this filing drought will keep on.  On the other hand, with a Democratic vast majority inevitably to appear, a generous spending plan maximize (described below), and several new strategic aims prepared for this FY 2023, a hectic year may perhaps pretty well lie ahead.

As we previously described listed here, FY 2020 professional a considerable downturn in filings as a end result of leadership modifications and the COVID-19 pandemic.  This remaining us questioning as to the gravity of the effects this might have on subsequent decades.  Yet, the EEOC promptly rebounded in FY 2021 with 114 overall filings at year close (see in this article).  While this number was even now appreciably considerably less than past a long time (see below), almost 50 % of FY 2021 filings have been in the thirty day period of September by itself, signaling a hectic yr for FY 2022.  However, with a mere 94 filings at the time of publication of this website article, FY 2022 did not live up to that circumstance-submitting trajectory.  The EEOC has seen spending plan boosts in the last two yrs, and has signaled the using the services of of numerous industry employees, such as attorneys.  The pieces appeared to be in location for a far more strong calendar year-finish filing spike after again in FY 2022, but the quantities do not exhibit that.

This could be, in component, for the reason that the Commission is even now led by a Republican bulk, and the EEOC lawyers in the industry are waiting for the composition to flip to the Democrats to raise the chance cases will obtain a eco-friendly mild, or that the authority to file steps will the moment once more be delegated to the subject fully.  The EEOC has been mum on the subject, however.  Modern political sparring may perhaps lend some perception.  Notably, associates have not long ago cried foul that EEOC lawyers are administratively withdrawing issues that have been voted down by the Commissioners so they may perhaps are living a different day (see listed here).  Finally, there is no statistical or anecdotal recommendation that the EEOC has throttled down on enforcement or is a lot more very likely to settle situations.  That indicates there is a queue of potential circumstances ready to be filed.

Instances Filed By EEOC Districts

The most apparent craze of this fiscal 12 months is a return of the typical leaders of the pack: the Chicago, Miami, and Los Angeles District Workplaces, with 12, 8 and 8 filings, respectively.  Chicago experienced a stunning dip in FY 2020 at only 3 filings, shot back up in 2021, but nonetheless lagged driving numerous other districts right until this calendar year.  In the same way, the Los Angeles District, which traditionally has been a foremost district for the EEOC, ended the 12 months on top rated as well.  The Miami District has also been very dependable, lodging at the very least 8 filings for five years in a row.  Lastly, the largest surprise District in FY 2022 was Charlotte, which submitted 10 advantage conditions this calendar year soon after accounting for only 4 filings very last year and only 1 filing in FY 2020.

Investigation Of The Types Of Lawsuits Submitted In FY 2022

Every fiscal yr we also examine the sorts of lawsuits the EEOC files (i.e., the statutes and theories of discrimination implicated) to hone in on the focus of the EEOC’s existing strategic priorities.  Those people quantities – when regarded on a percentage basis – are in line with the quantities we have observed the final handful of years.  The graphs under show the amount of lawsuits filed in accordance to the statute beneath which they were filed (Title VII, Us residents With Disabilities Act, Pregnancy Discrimination Act, Equal Pay out Act, and Age Discrimination in Work Act) and, for Title VII conditions, the theory of discrimination alleged.

When thought of on a percentage basis, the distribution of circumstances submitted by statute remained about constant in contrast to FY 2021 and 2020. Title VII conditions when once again designed up the vast majority of scenarios submitted, accounting for 65% of all filings (on par with the 62% in 2021 and 60% in FY 2020).  ADA instances also manufactured up a major proportion of the EEOC’s filings, totaling 29% this calendar year, a reasonable drop from 36% in 2021 and 30% in FY 2020.  Notably, there were 7 age discrimination circumstances filed this calendar year, a considerable enhance from very last year’s solitary situation.

March 2022 Price range Justification And FY 2021 General performance Report

On March 28, 2022, the EEOC launched its 3rd-annual Once-a-year Functionality Report (“APR”) for FY 2021, as effectively as its funds justification for FY 2023.  The APR is an evaluation of the EEOC’s litigation goals and functionality results, and contains significant details details regarding the EEOC’s modifying strategic aims and possible emphasis for long run enforcement action.  The FY 2023 finances, on the other hand, outlines how the Fee intends to allocate funds in buy to effectuate its ambitions by means of its proposed FY 2023 budget of $464,650,000.

In the APR, the EEOC declared that FY 2021 was a prosperous yr for the Commission in conditions of advancing its strategic objectives.  Certainly, the EEOC secured additional than $485 million in monetary reduction for in excess of 15,000 alleged victims of work discrimination.  By comparison, the EEOC recovered $535.5 million in FY 2020, $486 million in FY 2019, and $505 million in FY 2018.

Shifting into 2023, the EEOC justifies its $464,650,000 spending budget request — a whopping $60 million enhance from final year — primarily based on advancing the strategic priorities for the fiscal year.  Commissioner Burrows indicated that people priorities correlate with the Biden Administration’s get in touch with for a “whole-of-govt approach to addressing systemic discrimination and advancing equal opportunity.”  Probably this spending plan is specifically what the EEOC requirements for a comeback from final year’s downturn.

Implications For Businesses

Even with the EEOC’s somewhat tranquil FY 2022, businesses should continue on to preserve a near eye on the Commission’s litigation trends. Exclusively, provided the EEOC’s noteworthy finances boost and looming improve in leadership, we still anticipate filing numbers to ramp up in the near long term.  Moreover, with the EEOC established to adopt a new strategic plan for FY 2023, the timing seems appropriate for a new Democratic-led Fee to put into action a new set of priorities and emphasize these priorities as a result of litigation.

We will continue to keep track of these adjustments closely and continue to keep visitors apprised of developments.  And, as generally, we will retain up-to-day on EEOC info amid the at any time-altering political local climate, and share classes realized from FY 2022 to carry employers through the new 12 months.