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2021 EEOC Charge Statistics: Retaliation & Impact of Remote Work

Client Alert

The U.S. Equal Employment Opportunity Commission (EEOC) released its detailed information on workplace discrimination charges it received in 2021. 

Unsurprisingly, for the second year in a row, the total number of charges decreased as COVID-19 either shut down workplaces or disconnected employees from each other.  In 2021, the agency received a total of approximately 61,000 workplace discrimination charges - the fewest in 25 years by a wide margin.  For reference, the agency received over 67,000 charges in 2020, and averaged almost 90,000 charges per year over the previous 10 years. 

Interestingly, the total Monetary Benefits recovered through voluntary resolution of claims was over $350 million for the complainants of workplace discrimination.  This was the 7th highest total recovery on record over the previous 25 years.  This number was somewhat surprising because the agency only resolved about 62,000 total cases in 2021.  Again, for reference, in 2013, the agency collected record Monetary Benefits of $372 million, but that was for the resolution of over 97,000 claims.

What does this mean for employers?  It’s fairly simple.  While the total number of claims has been decreasing, the total cost of claims is steeply rising. 

What is the cause of the increase of cost of claims?  Again, it seems fairly simple.  Retaliation remains the most common type of charge filed with the EEOC.  Retaliation claims account for over 56% of the total charges filed, and are ordinarily the most expensive claims for employers. 

Why are retaliation charges problematic?  As we have cautioned employers, retaliation claims are problematic because they include claims of deliberate, targeted unlawful conduct in response to the claimant’s participation in a protected activity.  It is difficult to explain away or prove a legitimate business justification for targeted mistreatment of an employee who raised an internal complaint, gave a witness statement, or did something else to invoke the retaliation protection. 

What can employers do to minimize the risk?  To minimize the risk of retaliation claims employers can implement several baseline steps:

  • Make sure you have an effective avenue for employees to report employment complaints, including any threats of retaliation. We recommend a third-party anonymous hotline.
  • Once a complaint is received, begin the investigation immediately, fairly, and professionally.
  • As part of the investigation, specifically remind everyone involved that retaliation is strictly prohibited!
  • As part of your overall foundation, make sure all employees are trained and reminded that retaliation will not be tolerated and is grounds for immediate termination. This is accomplished through updated policies that are signed by employees and regular training.
  • Train employees on civility and respect in the workplace. These training events by third-party professionals have shown added benefits at minimizing not only the underlying bad acts, but also at preventing subsequent retaliation. 

With a proper foundation of workplace preventative measures, employers can minimize their risk of EEOC charges and high-leverage claims.  For further information, please reach out to Jeffrey C. Miller, jcmiller@bmdllc.com, or any member of the BMD L+E team.


Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.

Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.