EEOC-Initiated Litigation - 2025 Edition

©2025 Seyfarth Shaw LLP EEOC-INITIATED LITIGATION: 2025 EDITION | 40 39 | EEOC-INITIATED LITIGATION: 2025 EDITION ©2025 Seyfarth Shaw LLP alleges that the manager expressed hostility toward religion in comments made to other employees. Per the parties’ two-year consent decree, the company will pay $40,000 in monetary damages, provide annual training to managers on Title VII’s requirements, notify employees about the settlement, and revise its current policies to expressly include protection for religious accommodations to resolve the suit. EEOC v. Cmty. Loans of Am. and Carolina Title Loans, Inc., 6:22-cv-1000 (D.S.C.) According to the EEOC’s complaint, from approximately August 2019 through September 2019, a branch manager at the defendants’ Greenville, South Carolina location subjected an African American employee to a hostile work environment based on race. The manager made derogatory comments about African Americans and used racial slurs, including the N-word, in the employee’s presence. The employee reported these comments to managers and to a company hotline, but no remedial action was taken. In addition, the defendants refused to allow the employee to return to work on crutches after a disability-related surgery, forcing her to remain on unpaid leave until they terminated her employment. KEY CASES FILED IN FY 2024 EEOC vs. Sis-Bro, Inc., 3:24-cv-00968 (S.D. Ill.) The EEOC claims that the employer allowed an employee to be harassed because of her sex and gender identity, forcing her to quit. According to its suit, the targeted employee was a high performer and began her transition in 2018. From that time, the company’s co-owner made frequent derogatory comments about the employee’s gender identity, refused to call her by her name, opting to use her former name instead. Further, the employer failed to stop aggressive sexual harassment by a fellow employee which began in October 2020, when a newly hired employee exposed his genitals to her, touched and attempted to touch her breasts on occasion, and made frequent unwanted comments and sexual advances toward her. The company did not have a policy for reporting harassment; though, at least one employee reported the harassment to the co-owner, but the co-owner did not take steps to address the harassment, which continued until the employee was forced to quit. EEOC v. Alto Ingredients Inc., 1:24-cv-1269 (C.D. Ill.) The EEOC filed on behalf of an electrician who applied for a job with the employer and informed the company that he was disabled due to back injury sustained during service in the U.S. Navy. The electrician passed a pre-hire physical and was hired. His employment was successful, free of accidents, and he was praised for his technical ability and troubleshooting skills. Nevertheless, after coworkers said they were worried that he had difficulty climbing stairs and ladders, the company informed him it was firing him due to safety concerns. According to the lawsuit, the decision was made without any objective or medical evidence that his disability posed tangible safety risks. EEOC Chicago District Office DISTRICT PROFILE Director: Amrith Kaur Aakre Regional Attorney: Gregory M. Gochanour Merit Cases Filed in FY 2024: 7 Average Days Between Determination Letter & Failure to Conciliate: 107 Average Days Between Failure to Conciliate & Complaint: 131 Average Days Between Determination Letter & Complaint: 238 IL WI MN IA SD ND Chicago ©2025 Seyfarth Shaw LLP KEY SETTLEMENTS SECURED IN FY 2024 EEOC v. Urbana Sch. Dist. No. 116 and Urbana Educ. Ass’n, IEA-NEA, 18-cv-02212 (C.D. Ill.) The Urbana School District agreed to pay $206,301 to settle an age discrimination lawsuit brought by the EEOC alleging that the district limited the salary increase of a group of teachers over the age of 45 because of their age based on a provision within its collective bargaining agreement limiting the salary increases of teachers who are within 10 years of retirement eligibility to no more than 6% above their previous year’s salary. Based on the three-year consent decree, the district is also enjoined from limiting the ability of teachers to earn salary increases because of age, and entering into any agreement that limits a teacher’s compensation based on age or proximity to retirement eligibility. Further, it must provide training for district personnel involved in collective bargaining, post a notice about the suit’s resolution; and periodically report to the EEOC. KEY CASES FILED IN FY 2024 EEOC v. NICPA Cent. Auto Grp., LLC., Cent. Austin Motorcars, 1:23-cv-01541 (W.D. Tex.) According to the EEOC, three managers at a car dealership sexually harassed female employees. The managers regularly touched or attempted to touch female employees, made sexual comments about them, and critiqued their appearance, encouraging them female salespeople to “show more,” to “sell more.” The managers also developed a culture where discussing sexual encounters and watching sexual videos was commonplace. Several female employees who suffered harassment left their jobs as a result of the conduct and several employees, including a male manager, reported the harassers’ behavior to both the auto group’s director of human resources and chief operating officer. However, the complaint alleges that no appropriate investigation, corrective action, or remedial action resulted. Instead, the reporting employees were transferred to other dealerships managed and one was subsequently terminated. EEOC v. Castle Hills Master Ass’n Inc., et al., 4:24-cv-871 (E.D. Tex.) In its complaint the EEOC alleges that a pregnant resident coordinator diagnosed with placenta previa—a condition that causes physical symptoms and limitations—was terminated after requiring hospitalization. Approximately a month before her due date, the employee was hospitalized due to complications related to her condition; when her doctor ordered she be on bed rest until she gave birth, the employee notified her supervisor of her hospitalization and need for leave. The property management companies told the employee it would not accommodate her because they do not provide leave outside of that covered under its short-term disability plan or the Family Medical Leave Act, in violation of the Americans with Disabilities Act. EEOC Dallas District Office DISTRICT PROFILE Director: Travis Nicholson Regional Attorney: Timothy Maughan Merit Cases Filed in FY 2024: 7 Average Days Between Determination Letter & Failure to Conciliate: 62 Average Days Between Failure to Conciliate & Complaint: 125 Average Days Between Determination Letter & Complaint: 191 NM TX Dallas ©2025 Seyfarth Shaw LLP

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