As the U.S. Equal Employment Opportunity Commission (EEOC) enters a new fiscal year, several significant developments from the past year illustrate shifts in the agency’s priorities and strategies. Below is a breakdown of key takeaways from fiscal year 2024:
1️⃣ Strategic Focus on Priority Areas
The EEOC filed fewer total lawsuits in fiscal year 2024—110 merit suits, representing a 25% decrease from the previous year. However, the cases it did file aligned closely with its most recent Strategic Enforcement Plan (SEP), which emphasizes addressing systemic workplace discrimination, harassment, and protecting vulnerable and underserved populations.
Notable among the filed cases were lawsuits aimed at safeguarding teenagers, young adults, and minors from sexual harassment. The EEOC pursued actions against several employers, such as an Applebee’s franchisee in Alabama and a Mississippi gymnastics studio, where minors and teenage workers were allegedly subjected to ongoing sexual harassment. The agency’s definition of vulnerable workers also includes individuals with disabilities, and in 2024, the EEOC filed nearly a dozen lawsuits accusing employers of discriminating against job applicants with vision or hearing impairments. These cases emphasize the EEOC’s commitment to holding employers accountable for workplace harassment and discrimination, especially against vulnerable groups.
2️⃣ Increased Scrutiny on Service, Hospitality, and Healthcare Sectors
A significant number of EEOC lawsuits in 2024 targeted employers in hospitality, healthcare, and retail industries. These industries accounted for approximately half of the EEOC’s new cases. Given the high employee turnover and large workforces in these sectors, they are particularly susceptible to claims of discrimination and harassment.
Employers in these industries should take particular care to review and strengthen their anti-discrimination policies, training, and reporting mechanisms. The EEOC’s focus on these industries signals that companies employing a large number of workers—especially lower-wage and high-turnover positions—are at a higher risk of scrutiny.
3️⃣ Pregnant Workers Fairness Act (PWFA) Debuts
Fiscal 2024 marked the EEOC’s first lawsuits under the PWFA, a law enactedto protect the rights of pregnant employees and applicants. The PWFA requires employers to consider reasonable accommodations for workers affected by pregnancy, childbirth, or related medical conditions.
The EEOC brought five PWFA-related lawsuits, marking a key enforcement area for the agency. One of the first suits involved a trucking equipment manufacturer, Wabash National, which allegedly placed a pregnant employee on unpaid leave instead of accommodating her pregnancy-related needs. Another case targeted a Florida resort that allegedly fired a line cook following a stillbirth, rather than granting her six weeks of leave to recover and grieve.
Employers should be mindful of their accommodation obligations under the PWFA, as the EEOC is likely to continue aggressively enforcing this law in the coming years. As the agency seeks to establish case law precedents for PWFA violations, it is crucial for employers to review and revise their policies to comply with the new statute.
4️⃣ EEO-1 Reporting Compliance
In an unusual move, the EEOC filed 18 lawsuits in fiscal 2024 against employers that failed to file EEO-1 forms, which collect demographic data on employees by race, ethnicity, and sex. This represents an uptick in enforcement of a reporting requirement that many employers might overlook.
Private employers with 100 or more employees and federal contractors with 50 or more employees are required to file EEO-1 reports annually. The lawsuits filed in 2024 spanned various industries, including hospitality, transportation, and construction, and serve as a reminder that the EEOC is committed to enforcing data reporting obligations.
These cases, though not typical merit lawsuits, reflect the EEOC’s intention to ensure compliance with statutory requirements. Companies should be vigilant in meeting their EEO-1 obligations, as failure to comply may result in litigation and penalties.
5️⃣ Potential Impact of the Upcoming Election
The EEOC’s future enforcement activities may be shaped by the outcome of the 2024 presidential election. Under a Democratic administration, the EEOC may receive increased funding and expand its enforcement activities. A Republican administration, on the other hand, could result in budget cuts and a slowdown in enforcement.
The agency’s trajectory during the Trump administration saw a reduction in activity due to resource constraints, but under President Biden, the EEOC has ramped up its enforcement efforts, including a notable focus on systemic discrimination and high-impact cases. With the agency recently requesting a budget increase, the election outcome could significantly influence whether the EEOC intensifies or scales back its litigation and outreach efforts over the next few years.
The Bottom Line
As fiscal year 2025 begins, employers should be prepared for the EEOC’s continuing focus on systemic discrimination, harassment prevention, and the protection of vulnerable workers, particularly in industries like healthcare, hospitality, and retail. The debut of PWFA lawsuits and heightened enforcement of EEO-1 reporting obligations further highlight the agency’s evolving strategy. Companies should also be mindful of how the political landscape may influence the EEOC’s future direction and plan accordingly to mitigate potential legal risks.