Hunton Employment & Labor Perspectives

While most EEOC enforcement actions are related to individual complaints of discrimination and/or retaliation, so-called “pattern or practice” matters are those in which the EEOC attempts to show that an employer has systematically engaged in discriminatory activities. The Equal Employment Opportunity states on its website, “Systemic discrimination involves a pattern or practice, policy, or class case where the alleged discrimination has a broad impact on an industry, profession, company or geographic area.” To combat systemic discrimination, section 707(a) of Title VII of the Civil Rights Act of 1964 authorizes the EEOC to sue employers engaged in a pattern or practice of discrimination.

In EEOC v. McLane Co., Inc., the Ninth Circuit recently held that the EEOC has broad subpoena powers to obtain nationwide private personnel information, including social security numbers (“SSNs”), in connection with its investigation of a sex discrimination charge.

Damiana Ochoa, a former employee of a McLane subsidiary in Arizona, filed a charge with the EEOC alleging sex discrimination (based on pregnancy), claiming that when she tried to return to work after taking maternity leave, the company informed her that she could not return to work until she passed a physical capability strength test. Ochoa alleged that the company requires all new employees and all employees returning from medical leave to take the test and acknowledged that she failed this test three times. Based on her failure to pass the test, the company terminated Ochoa’s employment.

The Department of Labor is increasingly focused on identifying and pursuing claims of systemic discrimination, both in EEOC charge investigations and OFCCP audits. In this type of claim, the government challenges a policy or practice that (allegedly) disadvantages an entire group of protected employees. These claims are dangerous for employers because they can cover hundreds of work locations and thousands of employees. Employers often unwittingly set themselves up for these claims, by failing to recognize the implications of a seemingly routine information request.

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