2024 Employee Benefits Market Outlook 14 The agency also announced a formal partnership with the DOL’s Wage and Hour Division in September to enhance and maximize the enforcement of federal laws and regula琀椀ons through improved coordina琀椀on and communica琀椀on. Notably, the EEOC se琀琀led its 昀椀rst lawsuit alleging discrimina琀椀on arising from an employer’s use of AI in recrui琀椀ng and hiring in 2023. In 2023, the commission’s li琀椀ga琀椀on ac琀椀vity reached a level that hasn’t been seen in recent years—a signal that the EEOC is returning to prior levels of li琀椀ga琀椀on ac琀椀vity. At the end of 2023, the EEOC signi昀椀cantly increased the number of lawsuits it 昀椀led, including 67 in September. This helped boost the total number of lawsuits the agency 昀椀led in 2023 to 143, represen琀椀ng a 52% increase from 2022. The number of lawsuits the EEOC 昀椀led in FY 2023 was the most it had 昀椀led in 昀椀ve years. Considering that the EEOC only 昀椀led three cases during the 昀椀rst four months of FY 2023, it provides employers with a likely preview of what to expect in 2024. Employers can expect the EEOC to be even more ac琀椀ve in 2024 than last year since the agency received a 6% (or $26 million) budget increase for FY 2024, providing the EEOC with more resources for inves琀椀ga琀椀ons, enforcement ac琀椀ons and lawsuits. Prudent employers need to take heed of these developments in 2024, especially a昀琀er the EEOC issued a rare press release at the end of FY 2023 highligh琀椀ng its increased li琀椀ga琀椀on ac琀椀vity. EEOC Chair Burrows stated, “The EEOC’s li琀椀ga琀椀on program is an important tool to ensure compliance with the na琀椀on’s an琀椀-discrimina琀椀on laws and promote equal employment opportuni琀椀es when the commission is unable to obtain voluntary compliance.” Much of the agency’s li琀椀ga琀椀on e昀昀orts in FY 2023 were focused on the subject ma琀琀er addressed in its recently published guidance. With this increased ac琀椀vity, it’s vital that employers priori琀椀ze compliance with federal employment laws. Organiza琀椀ons can minimize their exposure to EEOC’s increasing enforcement ac琀椀ons by remaining compliant with federal laws, training managers and employees, reviewing workplace policies and handbooks, and staying informed about the agency’s strategies. Employers should consider focusing on prac琀椀ces that may expose them to liability, such as systemic lawsuits, and subjects on which the agency has recently published guidance.