The Price for Failing to Investigate a Sexual Harassment Claim = $4.5 million
The United States Equal Employment Opportunity Commission (EEOC) office received a black eye this month, when a judge with the Northern District of Iowa federal court issued an order requiring the EEOC to pay more than $4.5 million dollars in costs and attorneys fees in a dismissed lawsuit against a trucking company.
Many people, including Debra L. Reilly of the Workplace Investigations Blog and Tom Crane from the San Antonio Employment Law Blog are blogging from differing perspectives on this recent federal court decision.
The EEOC had filed a series of claims against trucking company CRST Van Expedited, alleging sexual harassment of female employees. The Court dismissed the case, finding the EEOC had failed to investigate and consolidate individual claims prior to bringing the Title VII lawsuit. The judge did not appreciate the EEOC’s litigation strategy of ‘sue first, ask questions later’.
As Ms. Reilly and Mr. Crane point out on their blogs, it is important to investigate claims before proceeding with a lawsuit. Rest assured the EEOC will not be making this mistake again. All employers should be aware EEOC will be more cautious in the future.
