The Second Circuit Court of Appeals has ruled that the Equal Employment Opportunity Commission (EEOC) has considerable discretion regarding the scope and nature of its administrative charge investigations, and that courts are permitted to review only whether an investigation occurred – not whether it was any good.
The panel’s ruling in EEOC v. Sterling Jewelers overturned a trial court decision restricting the scope of the EEOC’s lawsuit, and concluded that judicial review of EEOC pre-suit investigation efforts is limited. The ruling allows the commission to proceed with a nationwide pattern or practice lawsuit alleging sex discrimination under Title VII.
The appeals court noted that “in order to prove that it has fulfilled its pre-suit investigative obligation, the EEOC must show that it took steps to determine whether there was reasonable cause to believe that the allegations in the charge are true.”
In this case, the EEOC accused Sterling Jewelers of engaging in a pattern or practice of unlawful sex discrimination at all of its retail stores nationwide. The company contested the basis of the suit, pointing out that the charging parties worked in only a handful of stores, and that the EEOC investigation never went beyond those stores and individuals. The trial court refused to allow the EEOC to proceed on a nationwide basis, but the Second Circuit disagreed.
A copy of the Second Circuit’s ruling is available online.