WASHINGTON (AP) – The Supreme Court could put the brakes on the Obama administration’s growing crackdown against companies facing claims of discrimination against women, minorities and other protected groups.
Justices will hear arguments Tuesday in a case that considers whether employers can defend discrimination lawsuits by asserting that government lawyers did not try hard enough to settle claims before going to court.
Companies are complaining increasingly about the Equal Employment Opportunity Commission’s “systemic litigation” program, which turns individual complaints of bias into high-stakes class-action cases on behalf of dozens or even hundreds of workers.
The enforcement strategy has netted over $100 million in legal judgments and settlements from more than 50 companies since 2011, including $20 million from Verizon Inc. to settle allegations that the company unfairly fired or disciplined hundreds of disabled workers for missing work.
EEOC general counsel P. David Lopez has said the bigger cases send a stronger message to all employers about complying with the law. But employer groups deride the strategy as “sue first and negotiate later.” They complain of government bullying tactics and unfair take-it-or-leave-it offers that do not allow for meaningful settlement talks.