On August 25, 2025, the United States Court of Appeals for the Second Circuit delivered its ruling in EEOC v. AAM Holding Corp.,1 holding that the Equal Employment Opportunity Commission (EEOC) may continue investigating an employee’s charge, even after the employee receives a notice of right to sue letter and files a civil lawsuit. The decision could have widespread implications for employment discrimination charges and suits in the Second Circuit.
The EEOC’s Investigatory Process
After a charge is filed with the EEOC, the agency investigates the employee’s claim with the ultimate goal of determining whether there is reasonable cause to support the charge. In the run of cases, the EEOC reviews a statement of position from the charged employer and may seek additional relevant information by issuing requests for information, conducting witness interviews, or, less commonly, issuing administrative subpoenas or conducting on-site visits to the workplace.
If the EEOC decides not to litigate the charge, it will issue the charging party a Notice of Right to Sue letter (NRTS) signaling that the administrative remedies have been exhausted and permitting the charging party to file a lawsuit.
Factual and Procedural Background
AAM Holding Corp. involved an underlying charge of discrimination filed with the EEOC on behalf of a class of current and former employees of two adult dance clubs in New York City. The employees raised claims of sexual harassment and hostile work environment....
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