No Investigation, More Litigation: The New EEOC Disparate Impact Dilemma for Employers
From the employer’s perspective, the EEOC’s policy of closing charges that allege only disparate impact discrimination—without investigation—could significantly increase the risk of private litigation. The EEOC’s investigative process has traditionally served as a critical filter, screening out non-meritorious or weak claims before they reach the courts. Without this step, employers are more likely to face lawsuits from private litigants based on disparate impact allegations, regardless of their underlying merit. This shift means employers may need to defend more claims in court, leading to higher legal costs and resource burdens. The absence of an EEOC investigation also removes opportunities for early resolution or conciliation, which can clarify misunderstandings or resolve disputes before litigation . As a result, employers may encounter more protracted and expensive legal battles, even in cases that might have been dismissed or settled at the administrative level. At issue is the ...
