On August 25, the U.S. Court of Appeals for the Second Circuit in EEOC v. AAM Holding Corp. held that the Equal Employment Opportunity Commission (EEOC) can continue investigating discrimination claims even after issuing a right-to-sue letter and the complainant filing their claim in court.
The case arose from claims by dancers at adult entertainment clubs who alleged sexual harassment and a hostile work environment. After the dancers filed charges with the EEOC, the agency issued subpoenas to the employers seeking employee information. While the EEOC’s investigation was ongoing, the complainants obtained right-to-sue letters and filed their own federal lawsuits. The employers argued that the EEOC’s subpoenas were no longer valid once the employees chose to proceed in court.
The Second Circuit disagreed. In a unanimous decision, the court held that the EEOC retains the authority to continue investigating a discrimination charge even after issuing a right-to-sue letter. The court explained that the EEOC’s mandate is broader than resolving individual complaints: it also serves the public interest by combating systemic discrimination. For that reason, its investigative authority does not automatically end when a charging party becomes a plaintiff.
This ruling diverges from the Fifth Circuit, which interprets Title VII more narrowly, creating a circuit split and setting up the potential for future Supreme Court review. For now, in the Second Circuit, the EEOC may continue its investigations regardless of whether an individual has filed a lawsuit.