The Legal Quandary: The Rise in EEOC Bias and Discrimination Lawsuits—Not Good News for Employers

The past week dealt a severe blow to several U.S. corporate entities facing allegations of bias and discriminatory practices within their structures. The Justice Department initiated a groundbreaking resolution with Apple Inc., accusing the tech giant of illegal hiring discrimination against U.S. citizens and certain non-U.S. citizens with valid residency permissions. Apple has agreed to pay up to $25 million in back pay and civil penalties, marking the largest recovery under the Immigration and Nationality Act's anti-discrimination provision.

Additionally, Citigroup was ordered to pay $25.9 million in fines and compensation for unlawfully discriminating against credit card applicants identified as Armenian American. The shockwaves extended as the EEOC concluded FY 2023 with an astounding 144 filings, reaching a five-year peak in merit lawsuits. These legal actions are not exclusive to large corporations, as small businesses face similar impacts. The struggle to cover exorbitant legal fees and fines should serve as a wake-up call for smaller entities to adopt a proactive stance toward diversity, equity, and inclusion.

This surge in legal actions extends beyond internal employee relations; bias and discriminatory practices against customers can also extract a hefty toll. Citibank, for instance, incurred a $25.9 million penalty. In this special edition of the DEI Directive Newsletter, we delve into the EEOC's 2023 report, offering insights on how businesses can proactively build inclusive workplaces. The message is clear: the time for proactive measures is now, and businesses must prioritize diversity, equity, and inclusion to avoid the costly consequences.

Remember, the DEI journey is challenging, and at DEI Directive, we are dedicated to assisting organizations in tracking their DEI progress and remaining compliant with EEOC EEO1 filings. Our commitment persists, and we predict that DEI data analytics will play a pivotal role in helping organizations establish and sustain long-term DEI goals.

Learn more about the DEI Directive DEI Intelligence and Compliance platform by visiting www.deidirective.com. Schedule your DEMO today to delve into its comprehensive features.