Supreme Court Rules on Equal Employment Opportunity Commission Case:

The Supreme Court's ruling in Equal Employment Opportunity Commission v. Waffle House, Inc., No. 99-1823, (January 15, 2002), reversing, 193 F.3d 805 (4th Cir. 1999), is a victory both for the EEOC and people with disabilities. The decision (6-3) protects the EEOC's right to sue employers for discriminatory behavior and to seek damages, such as back pay, for the individual as well as injunctive relief even if the employee has agreed to submit all employment-related disputes to mandatory arbitration. Increasingly, employers are requiring employees to agree to submit all disputes to arbitration and to waive their right to file a lawsuit in court. Until this decision, it was unclear whether such agreements also prevented the EEOC from suing the employer.

This case involved an employee with epilepsy who filed a complaint with the EEOC alleging that he was terminated because of his disability. Under the terms of his employment contract, however, he was required to arbitrate such claims. The EEOC sued the former employer on behalf of the public and the employer claimed that such suits were foreclosed by the mandatory arbitration provision. The Fourth Circuit Court of Appeals, which covers Virginia, Maryland and the District of Columbia, held that although the employee's employment contract required that all employment-related claims be arbitrated, the EEOC could still file suit for "broad-based injunctive relief in the public interest." However, the employee must arbitrate claims for back pay, compensatory and punitive damages, and reinstatement. Under the Supreme Court decision, the employee is now eligible to receive damages and the case has been remanded to the lower court to determine what damages, if any, the employee is owed.

We congratulate the EEOC on its victory and applaud its efforts to ensure that people with epilepsy and other disabilities are protected by the law even when the individual has agreed to submit his claims to arbitration.

©2002 While this material is designed to provide accurate and current information on the subject matter involved, the Epilepsy Foundation and the authors cannot guarantee the accuracy or completeness of the information contained in this publication. This fact sheet is not a legal document and does not provide legal advice or opinion. If legal advice or other expert assistance is required, the services of a competent professional should be sought.