On April 29, 2015, the U.S. Supreme Court unanimously concluded that the Equal Employment Opportunity Commission’s (EEOC) efforts to conciliate a matter before filing suit—a statutory requirement of Title VII—can be reviewed by the courts. Mach Mining, LLC. v. EEOC, No. 13-1019 (April 29, 2015). The Court reversed a Seventh Circuit ruling that the EEOC must merely plead that it attempted conciliation and that its attempt was unsuccessful.

The case arose from a sex discrimination EEOC charge against Mach Mining, LLC (Company), alleging that the Company refused to hire female mineworkers. The EEOC sent the Company a letter inviting it to participate in informal conciliation proceedings, noting that the EEOC’s representative would contact the Company to discuss further. However, no such contact occurred, and one year later the EEOC informed the Company by letter that it considered the conciliation efforts unsuccessful. The EEOC filed suit days later.

As an affirmative defense, the Company asserted that the EEOC did not comply with its obligation to conciliate before filing suit. The EEOC moved for summary judgment on the affirmative defense, contending that its conciliation efforts were not subject to judicial review, so long as its pleadings asserted that it attempted conciliation. The District Court agreed with the Company that it could review the conciliation efforts, but granted leave to immediately appeal the decision to the Seventh Circuit. The Seventh Circuit reversed, concluding that the EEOC’s conciliation obligations were not judicially reviewable.

The U.S. Supreme Court disagreed with the Seventh Circuit, concluding that “Congress imposed a mandatory duty on the EEOC to attempt conciliation” as a precondition to filing a lawsuit, and such efforts should be reviewed by the courts. The EEOC must provide notice to the employer describing “both what the employer has done and which employees (or what class of employees) have suffered as a result. And the EEOC must try to engage the employer in some form of discussion (whether written or oral), so as to give the employer an opportunity to remedy the allegedly discriminatory practice.” The scope of judicial review of the EEOC’s conciliation activities is narrow: a reviewing court must confirm that the EEOC gave the employer notice and an opportunity to comply voluntarily, but will not assess the reasonableness of the efforts.

The Court attempted to strike a balance, recognizing that Title VII requires deference to the EEOC’s conciliation efforts. However, while the EEOC may heighten certain conciliation efforts in the wake of this decision, it still retains discretion to decide what types of efforts are appropriate and, ultimately, what resolution is acceptable. Thus, it remains to be seen whether the EEOC will ultimately try to use a take-it-or-leave-it approach rather than engaging in robust pre-suit bargaining efforts. Likewise, it remains to be seen whether courts will read Mach Mining to impose an obligation on the EEOC to disclose all of the individuals it purports to represent in pattern-or-practice cases and demonstrate how exactly each was allegedly harmed.

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Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower Practice. Steven’s national practice focuses on defending companies in federal and state courts and in arbitration fora against the full spectrum of employment-related claims, including claims of executives; restrictive covenant violations; employee raiding; theft of trade secrets; whistleblower retaliation under the Sarbanes-Oxley Act, the Dodd-Frank Act and similar state laws; and wage-and-hour violations, including class, collective and PAGA actions.

Steven has successfully handled trials in multiple jurisdictions; prevailed in seeking and defending against applications for temporary restraining orders and preliminary injunctions; defended one of the largest Illinois-only class actions in the history of the federal courts in Illinois (over 90k putative class members); and prevailed following his oral arguments before federal and state appellate courts. He brings his litigation experience (beginning in 1998) to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has the unusual experience of testifying in federal court in connection with investigations. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers. Chambers has reported:

  • Steven is “one of the best in the country and has a lot of experience”;
  • Steven is as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field”;
  • He is thoughtful, attentive and demonstrates an acute understanding of matters top of mind for business-minded general counsel; and
  • “He is someone who can navigate the twists and turns of litigation without difficulty.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a ”Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a U.S. Library of Congress Burton Award Winner for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal. The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.