EEOC to pay nearly $1 Million in attorney’s fees in background check case

September 9, 2015

Blog Post

On September 4, 2015, a federal court in Maryland ordered the EEOC to pay $938,771 in attorney’s fees to Freeman, a Dallas based company.

Freeman was accused by the EEOC of Title VII violations in conjunction with employee background and credit checks. The court found that the EEOC’s statistical expert was unreliable and, therefore, the statistical evidence would not be used to prove disparate impact bias against minority applicants. Once this evidence was excluded, the court found the EEOC continued to push its claims forward without any good faith basis. The court awarded Freeman the reasonable legal fees it incurred after the EEOC should have known the case had no merit.

A key takeaway from this ruling is that the EEOC is extremely aggressive in its pursuit of illegal background check policies. Employers should review their credit and background check policies to make sure they are in compliance with the law.

Under the DOL’s final rule, the annual salary level to qualify for exempt status will increase in two steps resulting in an increase from the current $35,568 per year to $58,656 per year by January 1, 2025.

Public corporations, such as JetBlue Airways Corp. and Molson Coors Beverage Company, are citing Diversity, Equity and Inclusion initiatives as a “risk” factor in their 10-K filings. The growing DEI pushback is a good reminder for employers that fairness and equality, regardless of protected characteristics, and based upon bona-fide qualifications, is a good compass by which to make employment-related decisions.

EEOC to pay nearly $1 Million in attorney’s fees in background check case

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