Court Upholds Large Judgment Against EEOC For Bringing Frivolous Lawsuit

Court Upholds Large Judgment Against EEOC For Bringing Frivolous Lawsuit

 The U.S. Court of Appeals for the Sixth Circuit in EEOC v. Peoplemark, 732 F.3d 584, No. 11-2582 (2013) recently affirmed a judgment against the U.S. Equal Employment Opportunity Commission in the sum of $751,942 for attorney fees and costs sought by Peoplemark, which claimed that EEOC’s action brought against it was frivolous. The Court of Appeals, in a 2-1 decision, agreed that EEOC’s claim that the company had a policy of denying employment to convicted felons and that it was unlawful and had a disparate impact on African-Americans lacked merit and was frivolous. The company early on in the process had established that it had in fact hired convicted felons. It would not be surprising if the EEOC sought review of this decision by the U.S. Supreme Court.

The Court of Appeals decision can be found at: http://www.ca6.uscourts.gov/opinions.pdf/13a0291p-06.pdf [an enhanced version of this opinion is available to lexis.com subscribers].

Read about additional Labor and Employment Law Developments by Edwin S. Hopson in the Wyatt Employment Law Report.

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