Court OKs EEOC’s continued investigation after charging party files suit

The U.S. Court of Appeals for the 2nd Circuit recently joined the 7th and 9th Circuits in holding that the Equal Employment Opportunity Commission’s (EEOC) investigatory powers don’t end after the agency issues a right-to-sue notice and the charging party files a lawsuit.

Background

The case arose from sexual harassment allegations at two New York City clubs. After the employee filed suit, the clubs argued that the EEOC should end its investigation. The district court disagreed, and the 2nd Circuit affirmed, noting that Title VII of the Civil Rights Act of 1964 grants the EEOC authority to investigate “at all reasonable times” and doesn’t impose any limits once a right-to-sue notice is issued or a lawsuit is filed.

For employers operating in the 2nd Circuit (which covers New York, Connecticut, and Vermont), this decision makes it possible to simultaneously face both a private lawsuit and an active EEOC investigation about the same underlying issues. Courts in these jurisdictions, as well as the 7th and 9th Circuits, are likely to allow the EEOC to continue its work even after the charging party files suit. In re AAM Holding Corp.