Spotlight on EEOC Enforcement: What Employers Need to Know for 2025 (Part 3)

The Equal Employment Opportunity Commission (EEOC) has been making headlines with its aggressive enforcement activities, and as we move into 2025, it’s clear that employers must be more vigilant than ever. In 2024, the EEOC filed 110 lawsuits—an unprecedented number—underscoring the growing scrutiny companies face in ensuring compliance with anti-discrimination laws. With new challenges emerging in workplace diversity, technology, and regulations, employers must be prepared for increased oversight and enforcement in the coming year.?

In this blog, we’ll explore key trends in EEOC enforcement and provide practical guidance to help employers navigate the evolving landscape of workplace discrimination law. From the Americans with Disabilities Act (ADA) to the impact of artificial intelligence (AI) and the Pregnant Workers Fairness Act (PWFA), this comprehensive breakdown will highlight the areas that should be top-of-mind as we head into 2025.?

Why Employers Should Care About EEOC Activity in 2025?

The EEOC plays a central role in regulating workplace practices and enforcing laws that prohibit employment discrimination based on race, color, national origin, sex, disability, and religion. The agency’s authority extends to investigating claims, initiating lawsuits, and providing guidance to help employers comply with federal regulations. When the EEOC takes action, it can result in significant financial penalties, reputational damage, and ongoing legal challenges.?

Employers should care about EEOC activity because failure to comply with these regulations can have severe consequences, both financially and operationally. For 2025, the EEOC is prioritizing areas such as disability accommodations, systemic discrimination, and the use of AI in hiring—all of which present real risks to employers who may not be fully aware of the agency’s evolving focus. In this context, we’ll break down key enforcement priorities and offer practical steps for staying ahead of compliance challenges.?

1. Growing Focus on Americans with Disabilities Act (ADA) Violations?

2024 Enforcement Data?

In 2024, a notable 48 out of the 110 lawsuits filed by the EEOC were related to the Americans with Disabilities Act (ADA), specifically violations surrounding failure to accommodate employees with disabilities and retaliating against individuals who request accommodations. This represents nearly 44% of the EEOC’s lawsuit activity, signaling the growing emphasis on ADA enforcement.?

What It Means for Employers?

The increased attention on ADA violations means that employers must be even more diligent in their efforts to comply with the law, particularly regarding the interactive process for reasonable accommodations. The EEOC has consistently warned that a failure to engage in a meaningful dialogue with employees requesting accommodations is a violation of the law. Employers should understand that merely providing an accommodation does not guarantee compliance; the accommodation process must be handled thoughtfully and in good faith.?

Practical Tips for Staying Compliant?

1. Engage in the Interactive Process: Ensure that when an employee requests an accommodation, a clear, documented process begins. This should involve discussions to identify the nature of the disability, the specific limitations it causes, and possible accommodations.?

1. Be Flexible and Creative: Accommodations may involve adjustments to work schedules, modifying job duties, providing assistive devices, or reassigning employees to different tasks or positions. Flexibility is key in determining what works best for both the employee and the employer.?

1. Train Supervisors: Managers should be trained to recognize potential disability-related requests and understand the process for handling them. They should also be aware that retaliation against an employee for requesting accommodation is prohibited.?

2. Tackling Systemic Discrimination: A Growing Concern for Employers?

What Is Systemic Discrimination??

Systemic discrimination refers to patterns of discriminatory practices that impact entire groups of people, not just isolated incidents. The EEOC has increasingly been targeting companies where patterns of systemic discrimination exist, especially in recruitment, promotion, and pay. This can include policies or practices that disproportionately affect a certain race, gender, age group, or other protected class.?

What Employers Need to Know?

The EEOC’s focus on systemic discrimination has led to large settlements, some involving millions of dollars. Employers should be aware that systemic discrimination investigations are often triggered by patterns that emerge in hiring or promotion statistics or through employee complaints. It’s no longer enough to address individual complaints—companies must proactively ensure that their policies and practices do not unintentionally create barriers for protected groups.?

Preventing Systemic Discrimination in Your Workplace?

1. Conduct Regular Audits: Employers should perform regular audits of hiring, promotion, and pay practices to ensure they are fair and non-discriminatory. An audit may involve reviewing demographic data to check for patterns that suggest discrimination.?

1. Establish Clear Anti-Discrimination Policies: Ensure that your organization’s policies explicitly forbid discriminatory practices and are consistently enforced across all levels of the company.?

1. Provide Ongoing Training: All employees, particularly supervisors and HR professionals, should undergo regular training on discrimination and diversity. This will help them recognize and avoid actions that could lead to systemic discrimination.?

3. EEO-1 Reporting Compliance: A New Enforcement Priority?

The EEO-1 Report: What Employers Must Do?

The EEO-1 report is an essential tool for tracking and reporting the diversity of a company’s workforce. Larger employers (those with 100 or more employees) are required to submit this report annually, which includes demographic data on gender and ethnicity. This information is used by the EEOC and other agencies to analyze trends in employment practices and identify areas where discrimination may exist.?

Recent Enforcement Actions?

In 2024, the EEOC penalized 18 companies for failing to comply with EEO-1 filing requirements, emphasizing that noncompliance can result in hefty fines and potential legal action.?

Avoiding EEO-1 Pitfalls in 2025?

1. Ensure Timely Submission: Employers must be aware of deadlines and file their EEO-1 reports on time. Failure to do so can lead to fines, audits, and potential investigations.?

1. Maintain Accurate Demographic Records: It’s important to keep accurate, up-to-date records of employee demographics to facilitate the accurate completion of the report. These records should be handled confidentially and comply with applicable privacy laws.?

4. The EEOC’s Emphasis on AI, Gender, and LGBTQ+ Discrimination?

AI and Discriminatory Practices?

As AI becomes more prevalent in hiring and promotion decisions, the EEOC has turned its focus to ensure that AI tools do not perpetuate discrimination. AI systems, if not properly designed, could inadvertently favor one demographic over another, which may lead to legal challenges.?

What Employers Should Do?

Employers should audit their AI tools and algorithms for bias. Ensure that the data used to train these systems is diverse and representative of the entire workforce. Regularly review the outcomes of AI-driven decisions to identify any unintended patterns of discrimination.?

Gender and Sexual Orientation Discrimination?

The EEOC is seeing a rise in cases related to gender and sexual orientation discrimination, particularly as it pertains to transgender and non-binary individuals. Employers need to ensure that their policies are inclusive and reflect current understandings of gender identity.?

Actionable Steps?

1. Create an Inclusive Workplace: Update company policies to ensure they are inclusive of all gender identities and sexual orientations. Make sure that restroom facilities, dress codes, and other policies are accommodating to employees of all gender identities.?

1. Offer Gender Sensitivity Training: Provide training for employees and management to create a more inclusive workplace. This includes educating staff about gender-neutral pronouns and the importance of respecting diverse identities.?

5. The Pregnant Workers Fairness Act: Key Considerations for 2025?

Understanding the PWFA?

The Pregnant Workers Fairness Act (PWFA), which came into effect in 2023, requires employers to provide reasonable accommodations to employees affected by pregnancy, childbirth, or related medical conditions. These accommodations may include changes to work schedules, more frequent breaks, or temporary reassignment to lighter duties.?

Recent EEOC Enforcement?

The EEOC has already begun enforcing the PWFA, issuing fines for employers who fail to accommodate pregnant workers. This trend is expected to continue as more companies navigate the complexities of the new law.?

What Employers Need to Know?

1. Flexibility is Key: Be prepared to offer reasonable accommodations based on the needs of the employee. Common accommodations include more frequent restroom breaks, allowing additional hydration, or providing temporary work-from-home arrangements.?

1. Establish Clear Policies: Create clear, written policies that explain the process for requesting pregnancy-related accommodations. Train managers to handle such requests appropriately and with empathy.?

Avoiding Legal Pitfalls in 2025?

Employers should establish clear policies, communicate openly with employees, and ensure all management staff is trained on the requirements of the PWFA.?

Conclusion: Preparing for EEOC Scrutiny in 2025?

The EEOC is prioritizing enforcement in 2025, and employers must stay informed and proactive to avoid potential pitfalls. By focusing on key areas like ADA compliance, systemic discrimination, EEO-1 reporting, AI fairness, gender and LGBTQ+ inclusivity, and the Pregnant Workers Fairness Act, employers can better prepare for heightened scrutiny. Regular audits, ongoing employee training, and up-to-date reporting practices will be critical for mitigating risk and staying ahead of regulatory changes.?

Now is the time to assess your company’s policies and practices. Reach out to our team of HR experts at MP to ensure that your workplace complies with the latest EEOC guidelines and prepares for the challenges of 2025. The cost of noncompliance can be high—so proactive steps today will safeguard your company’s future.?

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