Employment Law Update: Growing Number of Courts Rule EEOC May Continue Investigating After Charging Party Files Suit
Date: September 26, 2025
By:
Caitlin E. Tobin
The case, In re AAM Holding Corp., arose from sexual harassment allegations at two New York City clubs. After the employee filed suit, the clubs argued that the EEOC should end its investigation. The district court disagreed, and the Second Circuit affirmed, noting that Title VII of the Civil Rights Act of 1964 grants the EEOC authority to investigate “at all reasonable times” and does not impose any limits once a right-to-sue notice is issued or a lawsuit is filed.
For employers operating in the Second Circuit (which covers New York, Connecticut, and Vermont), this decision makes it possible to simultaneously face both a private lawsuit and an active EEOC investigation about the same exact underlying issues. Courts in these jurisdictions, as well as the Seventh and Ninth Circuits, are likely to allow the EEOC to continue its work even after the charging party files suit.
Notably, however, the Fifth Circuit (which covers Texas, Louisiana, and Mississippi) has ruled differently, holding that the EEOC’s investigative authority ends once a lawsuit predicated on a right-to-sue notice is filed. As a result, the rules may vary depending on where your business operates, and the Supreme Court may eventually step in to resolve these differences. In the meantime, employers should be prepared to keep thorough records, respond to EEOC requests, and coordinate their legal and compliance strategies to address both agency investigations and private lawsuits.
If you have questions about how this decision may impact your organization or need assistance responding to an EEOC investigation, please contact Whiteford’s Labor and Employment attorneys.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.