On March 24, 2025, the landscape of workplace compliance took a sharp turn. In one day, the U.S. Equal Employment Opportunity Commission (EEOC) announced three major enforcement actions, totaling over $1 million in settlements, while the Office of Federal Contract Compliance Programs (OFCCP) appointed Catherine Eschbach as its new director.
This alignment is more than symbolic—it’s a strong indication that federal agencies are stepping up their enforcement game, and employers, especially federal contractors, should take notice.
Three Cases, One Clear Message
In a coordinated enforcement push, the EEOC issued the following settlements:
Allegations included repeated sexual harassment of female housekeepers and retaliation after complaints were filed. The employer reportedly failed to take action for over a year. The settlement included monetary relief, policy revisions, reinstatement offers, and a consent decree requiring EEOC oversight.
A female employee who reported sexual harassment was retaliated against through a reduction in hours and eventual termination. The EEOC found clear violations of Title VII and secured a substantial settlement and policy improvements.
New York Beer Project – $225,000
Two employees were fired solely because of their disabilities. The EEOC cited violations of the Americans with Disabilities Act (ADA) and secured a consent decree requiring the employer to revise policies and report compliance efforts.
These cases reflect a coordinated effort to hold employers accountable for discrimination, harassment, and retaliation—with an emphasis on swift and public resolution.
OFCCP’s New Leadership: A Strategic Reset
On the same day, the Trump administration appointed Catherine Eschbach as Director of the OFCCP. Known for her litigation experience and commitment to equal opportunity, Eschbach steps into the role at a time when federal contractors are adjusting to the compliance landscape under Executive Order 14173.
EO 14173, which replaced EO 11246, continues the federal government’s mandate to prohibit discrimination in the workplace—but with tougher enforcement tools, including:
- Linking nondiscrimination compliance to the False Claims Act
- Increased penalties and debarment risk
- Greater inter-agency coordination, including with the EEOC and DOJ
The timing of Eschbach’s appointment, coupled with the EEOC’s action, suggests a deliberate recalibration of enforcement strategy across the federal government.
What This Means for Employers—Especially Federal Contractors
These developments send a unified message:
The era of passive compliance is over.
For employers, particularly those doing business with the federal government, this is the moment to ensure you have:
- Robust, enforced anti-discrimination and harassment policies
- Regular self-audits of hiring, promotions, and terminations for adverse impact
- Prompt investigation and resolution of complaints
- Training for all managers and employees on their rights and responsibilities
- Recordkeeping (Documented proof) of compliance and Good Faith efforts
Final Thought
The announcement of three major EEOC settlements in a single day is no coincidence. It reflects a clear shift toward stronger enforcement of workplace discrimination laws. Adding to this momentum, Catherine Eschbach was appointed on March 24 to lead the OFCCP, the agency responsible for ensuring federal contractors comply with nondiscrimination requirements.
For both federal contractors and private employers, this is a turning point. this isn’t the time to pause, “wait and see” or pull back on compliance and good faith efforts. Compliance is no longer just a formality—it’s a legal necessity. It’s time to double down—to ensure your policies, practices, and workplace culture meet the growing expectations of this new enforcement era. In today’s regulatory climate, the best protection is preparation.
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