The U.S. Equal Employment Opportunity Commission (EEOC) has directed its investigators to close all pending disparate impact discrimination charges by September 30, 2025, unless special approval is granted. The directive follows an executive order from the President instructing federal agencies to deprioritize enforcement of disparate impact liability.

Discrimination claims generally fall into two categories: disparate treatment, involving intentional bias, and disparate impact, where neutral policies disproportionately harm protected groups because of their protected classifications, such as race, sex/gender, sexual orientation, age, disability, national origin, or religion. For example, hiring criteria that has minimum height and weight requirements may have a disparate impact on female applicants. Under the new directive, the EEOC will no longer pursue investigations based solely on disparate impact allegations. Employees with such claims will instead receive a Notice of Right to Sue, allowing them to file directly in federal court within 90 days.

As a result, employers may see an uptick in disparate impact lawsuits filed in the courts, even as EEOC enforcement of these claims declines.

For questions on how this can impact your workplace, contact an RKW employment lawyer.