The employer is vicariously liable for a hostile work environment created by a supervisor. An employee is a “supervisor” if the employer has empowered that employee to take tangible employment actions against the victim, causing a significant change in employment status. Examples of this significant change include hiring, firing, failing to promote, reassignment with significantly different responsibilities or a decision causing a significant change in benefits. The employer can avoid liability for an EEOC complaint regarding hostile work environment harassment only if it can prove that:
Whether or not the grievance has merit, employers have to spend a great deal of time, and sometimes money, going through the process. Here are five ways an EEOC complaint of discrimination can hurt your business:
The EEOC complaint investigation typically begins with a “statement of position” where the employer shares its side of the story. The EEOC will also request documents related to the case, which potentially include copies of company policies and personnel files. In some cases, EEOC employees will visit your workplace and ask you to make employees and/or supervisors available for interviews. Investigators use these processes to determine whether the EEOC complaint merits further action.
If investigators determine the need for a formal investigation, they may choose to subpoena company documents and compel employees to provide statements. These types of investigations can last several months to a year. Many employers choose to involve an attorney at this point, but others attempt to avoid a formal investigation by settling the EEOC complaint or agreeing to resolve it through mediation.
If the employer agrees to mediate, they won’t necessarily have to admit any guilt or liability but may have to change policies and procedures and/or compensate the employee who complained. If the employer doesn’t agree to mediate, the EEOC may decide to sue the employer or grant permission for the charging party to sue the employer in court. Litigation is not only expensive but can create negative publicity.
It’s important for employers to be aware of just how costly an EEOC complaint can be. In 1998, hundreds of women who worked on Mitsubishi’s assembly line in Illinois claimed their male co-workers fondled them, demanded sexual favors and retaliated against those who didn’t comply. More than 400 women received $34 million in monetary relief. This remains one of the most publicized sexual harassment cases in history.
Penalties for an EEOC complaint start with providing relief for workers who suffered discrimination. Those may include:
Prevention is the best tool to eliminate harassment in the workplace and avoid an EEOC complaint. Employers are encouraged to prevent and correct unlawful harassment by clearly communicating to employees that they won’t tolerate unwelcome, harassing conduct. They can do this by establishing an effective complaint or grievance process, providing anti-harassment training to their managers and employees and taking immediate and appropriate action when an employee complains.
Do you have additional questions about how to protect yourself and your employees? Be sure to check out our webinar on sexual harassment and discrimination in the workplace.
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