EEOC Retains Authority To Investigate Even After Charging Party Sues, Second Circuit Rules

September 4, 2025

What's New

The EEOC retains its authority to investigate a charge after it issues a right-to-sue letter and the charging party sues, the Second Circuit held August 25 in EEOC v. AAM Holding Corp.

A dancer filed a class charge with the EEOC, alleging sexual harassment at two clubs. The EEOC subpoenaed employee records, which the club owners challenged as irrelevant and burdensome. A federal district court ordered compliance.

While the clubs appealed, the EEOC issued a right-to-sue letter, and the dancer filed a class action. The clubs argued that the EEOC’s authority to issue subpoenas ended once the dancer sued.

The Second Circuit stated that the EEOC’s investigative authority extends beyond the right-to-sue letter. It noted that Title VII compels the EEOC to complete its investigation within 120 days only “so far as practicable,” which “is not a hard stop.”

What It Means

This decision deepens a circuit split. The Fifth Circuit held in 1997 that the EEOC’s investigative authority ends once a lawsuit is filed, reasoning that Title VII’s multistep enforcement procedure divides EEOC’s process into distinct stages. However, the Ninth Circuit in 2009 and the Seventh Circuit in 2017 held that the EEOC retains its investigative authority. With this decision, the Second Circuit joined these circuits.

What You Should Do

To better understand how to respond to EEOC charges, consider registering for our remote training course Investigating and Responding to Discrimination Charges.

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