Sign Up for Publications2024 EEOC Annual Performance Report: Notable Trends and Insights for Employers
On January 17, 2025, the U.S. Equal Employment Opportunity Commission (“EEOC”) released its Annual Performance Report (“APR”) for fiscal year (“FY”) 2024, covering October 1, 2023, through September 30, 2024. The 78-page APR details the EEOC’s yearly efforts to enforce federal workplace anti-discrimination laws and its rate of success. In conjunction with the APR, the EEOC also released its Office of General Counsel’s Annual Report. Together, these two reports detail three notable trends for employers: (1) an increase in the number of charges filed with the EEOC; (2) a decrease in the number of lawsuits filed by the EEOC; and (3) the highest monetary recovery by the EEOC in recent history.
Although each administration has its own priorities and objectives, the EEOC remains “open for business” under the second Trump administration. Thus, the APR serves as a valuable resource for employers to understand the EEOC’s ongoing enforcement priorities, to foster positive work environments, and to determine proactive adjustments to its employment practices in order to protect and defend itself against allegations of employment discrimination and the potential of years-long litigation and costly settlements.
Increase in Charges
In FY 2024, there were 88,531 new charges of discrimination filed with the EEOC, a 9.2% increase compared to FY 2023. This increase is likely a result of the EEOC’s increased outreach and education efforts in FY 2024, such as hosting 23 REACH initiative events with workers across the country, conducting in-person and virtual no cost outreach and fee-based training events for individuals nationwide, and improving access of EEOC resources to individuals whose primary language is not English. Despite the 9.2% increase in charges filed, the EEOC ended FY 2024 with 52,080 charges pending, only a slight increase from the 51,100 charges pending in FY 2023. Based on the EEOC’s continued outreach and education efforts, employers can expect a continued increase in the number of charges filed in FY 2025.
Decrease in Litigation
According to former EEOC General Counsel Karla Gilbride, “[l]itigation is only one tool in the EEOC’s toolbox for achieving its mission.” In FY 2024, the EEOC filed 111 merits lawsuits, a notable decrease in litigation from the 143 suits filed in FY 2023. The 111 lawsuits encompass a variety of bases: (1) nearly 47% of the filings allege a violation based on sex (including the EEOC’s first five lawsuits filed under the Pregnant Workers Fairness Act); (2) approximately 43% of the filings allege an Americans with Disabilities Act (“ADA”) violation; (3) nearly 39% of the filings allege a violation based on retaliation; (4) roughly 13% of the filings allege a violation based on race; (5) over 6% of the filings allege an Age Discrimination in Employment Act (“ADEA”) violation; (6) about 5% of the filings allege a violation based on national origin; and (7) roughly 3% of the filings allege a violation based on religion.
The bases of these claims provide employers with valuable insights. For example, with forty-eight lawsuits alleging violations of the ADA, employers should be mindful of qualification standards, such as implementing strict requirements without consideration of possible accommodations. Similarly, with forty-three lawsuits alleging retaliation claims, employers should be mindful of conduct that could be perceived as retaliatory based on the circumstances.
In addition to understanding the bases of the claims, employers should also be aware of the types of claims the EEOC tends to pursue. Specifically, of the 111 merits lawsuits filed by the EEOC in FY 2024, seventy-six suits seek relief on behalf of an individual, twenty-two suits are non-systemic and involve multiple individuals, and thirteen suits involve allegations of systemic discrimination.
Lawsuits involving allegations of systemic discrimination are a large portion of the EEOC’s litigation caseload. The EEOC concluded FY 2024 with 205 active merits cases, forty-five of which involve challenges to systemic discrimination. The EEOC defines systemic cases as “pattern or practice, policy and/or class cases where the discrimination has a broad impact on an industry, profession, company or geographic location.” In FY 2024, the EEOC resolved sixteen systemic cases and obtained over $23.9 million, a 104% increase over FY 2023. The EEOC also reported a 100% success rate in systemic case resolutions. Based on the EEOC’s rate of success, employers can expect systemic cases to remain a priority for the EEOC in FY 2025.
Record Recovery
The EEOC yields a high return on investment, recovering substantially more in monetary benefits than its annual budget. In FY 2024, the EEOC recorded a successful outcome in 97% of all suit resolutions. Despite the decrease in the number of cases filed in FY 2024, the EEOC secured almost $700 million for workers, the EEOC’s highest monetary recovery in recent history. The $700 million can be divided into three categories: (1) over $469.6 million for workers in the private sector and state and local government through mediation, conciliation, and settlements; (2) more than $190 million for federal employees and applicants; and (3) over $40 million for individuals through litigation resolutions.
Get Quinn Emanuel on Your Side
Quinn Emanuel has successfully guided companies faced with complex EEOC charges, including Quinn Emanuel’s successful representation of Bowlero Corporation in 2024. Quinn Emanuel began its representation of Bowlero in 2023, after the matter had been ongoing with the EEOC since 2016. In less than one year, the EEOC closed its case against Bowlero, declining to sue on behalf of a single claimant and determining that it would not proceed forward with a systemic suit.