What's Happening?
The U.S. Equal Employment Opportunity Commission (EEOC) experienced a significant decline in litigation activity during the fiscal year 2024, marking the lowest rate in a decade. This decrease is attributed to resource constraints and administrative changes, including the firing of two Democratic commissioners by President Trump, which left the EEOC without a quorum. Despite the low litigation numbers, the EEOC focused on enforcing the Pregnant Workers Fairness Act and religious discrimination cases, while stepping back from gender identity cases. The agency's shift in focus reflects the priorities of Acting Chair Andrea Lucas, who has emphasized pregnancy and religious rights.
Why It's Important?
The EEOC's shift in focus and reduced litigation activity have significant implications for employers across the U.S. The agency's emphasis on pregnancy and religious discrimination cases suggests a strategic pivot that could affect how businesses approach compliance with federal employment laws. Small and lesser-known employers have become more prominent targets, indicating that no employer is immune from scrutiny. This change could lead to increased vigilance among employers to ensure compliance with evolving EEOC priorities, particularly in light of potential future changes with a restored quorum.
What's Next?
With the expected confirmation of Brittany Panuccio as a commissioner, the EEOC is likely to regain a quorum, potentially leading to more controversial cases, including those related to diversity, equity, and inclusion (DEI) programs. Employers should prepare for possible systemic litigation in these areas, as the agency may pursue cases that challenge DEI initiatives. This development could prompt businesses to reassess their policies and practices to mitigate legal risks.
