The chapter explains the standards governing the settlement of EEO disputes in the federal sector. By giving both agencies and their employees useful and detailed information about the options they have in settling EEO cases, it will make it more likely that parties in these disputes will be able to resolve their differences on their own. This new chapter helps implement EEOC's long-standing policy of strong support for settlements of EEO cases in appropriate circumstances. Agencies do not have to admit to wrongdoing in order to settle an EEO claim. Because the legal authority to settle these cases is found within the EEO laws themselves, the Back Pay Act requirement that there must be a finding of an unjustified or unwarranted personnel action to justify a payment of back pay in connection with other personnel claims doesn't apply.
Agencies have significant flexibility in structuring settlement agreements.
As long as the parties agree, they can settle for any relief that a court could order if the case were to go to trial. Remedies can also include more creative measures such as the provision of out-placement services to a discharged employee, so long as the costs don't exceed what the employee would be entitled to under the EEO laws. For example, if the parties agree, they could settle a case involving a claim of a discriminatorily denied promotion with a cash payment to the employee but no promotion. The parties could also agree to a retroactive personnel action, such as a promotion, without any accompanying back pay or monetary payment. As long as the personnel action and the monetary payments do not exceed the employee's legal entitlements, such a settlement would be acceptable.