A  judge has ruled the Equal Employment Opportunity Commission (EEOC) must fork over costs and legal fees for mishandling a discrimination complaint against an employer. Will the ruling affect the way the EEOC treats other companies in the future?

Two disparate lessons become apparent after an examination of the case, in which the judge ordered EEOC to pay the company $4.5 million:

• Companies don’t have to simply roll over when faced with an EEOC allegation – sometimes it pays to stand and fight, but
• The cost of making a stand can be astronomical.

Here’s a summary of the case:

The EEOC sued the company on behalf of female employees who claimed they’d been victims of sex discrimination.

The agency provided the names of only some of the complainants to the employer, so the judge tossed out the claims of the remaining women. After reviewing the merits of the claims that were left, the judge denied most of them.

And when the remaining 67 came to trial, the judge found in favor of the employer – because, the court said, the agency hadn’t conducted “any investigation of the specific allegations” before filing the lawsuit.

That omission “foreclosed the possibility” that the company could have settled the disputes without the expense of a lawsuit, the judge said.

Giant legal fees

The company then filed a claim for legal expenses and costs – including a  bill for more than $7 million in attorneys’ fees. Here’s a partial rundown of what the judge finally awarded the employer:

• slightly over $4 million in lawyers’ fees
• $62,000 in investigators’ fees
• $242,000 in expert witness fees
• $34,000 in travel expenses, and
• $119,000 in printing and copy expenses.

The judge denied the employer’s request for expenses incurred in videotaping witness testimony, the cost of visual aids used in court, and some research costs.

Sea change? Not so much

Clearly, the judge delivered a blistering slap in the face to the EEOC – not to mention a measure of vindication for those employers who suspect the EEOC’s operational model is “Sue first, ask questions later.”

But does this mean the agency will tread more carefully in the future?

Hope springs eternal, but the answer’s probably no.

A few realities to bear in mind: Employee discrimination complaints have been rising steadily over the past decade, and there’s no indication that trend will change.

The EEOC’s chronically understaffed. The combination of an increased caseload and too-few staffers doesn’t bode well for more thorough investigations into future claims.

Finally,  not many companies have pockets deep enough to fight off a federal lawsuit the way this firm did. And, cynical though it may sound, EEOC officials use that reality to their advantage.

So while the ruling is a big win for employers, it’s not likely to change the basic rules of the game.

Best bet: Stay vigilant when it comes to strong anti-discrimination policies, have a structure in place to deal with complaints in a positive way, and respond to bias claims as quickly as humanly possible.

Cite: EEOC v. CRST Van Expedited, Inc.