The U.S. Equal Employment Opportunity Commission
US EEOC Performance and Accountability Report FY 2007


Graphic representation of strategic plan, as described in this document

Additionally, we met with our Fair Employment Practices agency (FEPA) partners in June 2007 and began a discussion about developing an approach that would identify one or more ways to appropriately measure their contributions toward the achievement of EEOC’s strategic goal and its mission. We are continuing that dialogue, through a workgroup comprised of EEOC and FEPA representatives, working collaboratively to address this issue, so that we can fulfill the requirements of the second element of our PART improvement plan. On page 5, we revised the graphic initially used in our Strategic Plan to add a placeholder for the FEPA measure(s) once they are developed.

Strategic Objective: Justice, Opportunity and Inclusive Workplaces

The agency has 10 performance measures under its Strategic Objective. These measures are used to drive results and accountability throughout the agency. EEOC achieved or exceeded the targets for eight of these measures. Targets for two measures were not met this year. Also, the new performance structure includes measures that were entirely new for the agency: Long Term/Annual Measure 1 and our Efficiency Measure. These measures challenged the agency to develop new methodologies to collect data that did not already exist; making FY 2007 a year to build our capacity to address aspects of our new performance structure.

Our progress in meeting our 10 measures is summarized below and discussed in detail in the Performance Results section of this report.

EEOC FY 2007 Performance
Measures Met
Targets Met
Not Met
Targets Not Met
10 8 2

Our modified performance measurement structure identifies the results we achieved to benefit individuals in workplaces nationwide and to provide both timely and high quality service to our customers. Long Term/Annual Measure 1 was developed during OMB’s PART review in FY 2006. During discussions with OMB during FY 2007, we modified and focused this measure on our private and federal sector enforcement programs. The measure is designed to demonstrate the results the agency achieves for all individuals affected by changes in workplaces resulting from our enforcement activities. During the past fiscal year, we collected the data for our enforcement programs and established a base line value. In early FY 2008, we will establish annual targets and a final goal. Since our new Efficiency Measure is directly linked to the data collected for Long Term/Annual Measure 1, we have established the base line and will identify the targets and a goal for this measure in FY 2008. We explain our efforts to develop both measures in more detail in the Performance Section.

Private Sector Enforcement Program: Providing quality services that are fair and prompt, for both employees and employers, in our administrative processing system is vital to our mission. In FY 2007, we received 82,792 private sector charges of discrimination, a 9% increase from FY 2006. We also received 3,449 charges through net transfers from state and local Fair Employment Practices Agencies (FEPAs). We achieved 72,442 resolutions, with a merit factor resolution rate of 22.9%. (Merit factor resolutions include mediation and other settlements and cause findings, which, if not successfully conciliated, are considered for litigation.) In comparison, the merit factor resolution rate for FY 2006 was 22.2%. Through our administrative enforcement activities, we also secured more than $290.6 million in monetary benefits, which is significantly higher than the $229.8 million obtained in FY 2006. Overall, we secured both monetary and non-monetary benefits for more than 17,357 people through our charge processing. The combination of increased receipts and decreased resolutions compared with FY 2006 left us with a pending inventory of 54,970 charges at the end of the fiscal year, compared with the FY 2006 figure of 39,946.

Timeliness is a key measure of our success in processing private sector charges. Measure 2.1 tracks our progress in resolving charges in 180 days or fewer. In FY 2007, our target was to resolve 72% of the charges within this time frame. We did not meet this target. Rather, 55.6% of the charges were resolved in 180 days or fewer. Several factors contributed to this result, including the increase in our receipts from FY 2006 to FY 2007 combined with a decline in investigator staffing levels. This has resulted in a growing pending inventory that is correspondingly older. To keep the age of the inventory under control, both in this fiscal year and in future years, offices continue to focus on balancing the resolution of both older cases and newer charges.

Our other key measure for success in processing private sector charges assesses the quality of our charge files. Under Measure 2.4, we exceeded our FY 2007 target of 88% of investigative charge files meeting the standard of quality, with 93.5% meeting the quality standard.

Federal Sector Enforcement Program: In our federal sector enforcement role, the EEOC is responsible for providing hearings and appeals after the initial processing of the complaints by each individual federal agency. Unlike our responsibilities in the private sector, we do not process charges of discrimination for federal employees. In the federal sector, individuals file complaints with their own federal agencies and those agencies conduct a full and appropriate investigation of the claims raised in the complaints. Complainants can then request a hearing before an EEOC administrative judge. In FY 2007, we received 7,869 requests for hearings which is slightly more than the 7,802 received in FY 2006. Additionally, we resolved a total of 7,163 complaints and secured more than $39.8 million in relief for parties in these complaints. Our Strategic Plan for FY 2007 set a target for Measure 2.2 to resolve 50% of federal sector hearings in 180 days or fewer. We did not meet our goal, resolving 42.8% of hearings cases in 180 days or fewer.

The EEOC also adjudicates appeals of federal agency decisions on discrimination complaints and ensures agency compliance with decisions issued on those appeals. During FY 2007, the EEOC received 5,226 requests for appeals of final agency decisions in the federal sector. We made significant gains in processing our federal sector appellate inventory during FY 2007. Our goal for Measure 2.3 was to resolve 60% of appeals within 180 days or fewer. In FY 2007, we resolved 5,617 appeals, 60.7% of them within 180 days of their receipt. We were able to meet our goal because of effective management of the appellate inventory and technological innovations. For FY 2008, we are increasing our target to 62% to continue to address our appeals workload in an ambitious manner.


The Commission has been successful in encouraging mediation in our private and federal sector programs. As an enforcement tool, mediation has proven beneficial in advancing the agency’s mission by resolving employment disputes in a timely, efficient and effective manner.

Private Sector Mediation Program: The EEOC’s mediation program has been very successful and has contributed to our ability, over the past few years, to manage our growing inventory and resolve charges in 180 days or fewer. In FY 2007, the EEOC’s National Mediation Program secured 8,649 resolutions, which is 5% more than the 8,201 reported in FY 2006. We secured more than $124 million in monetary benefits for complainants from mediation resolutions, which far surpasses the $109 million in monetary benefits in FY 2006.

Measure 2.5 highlights an important aspect of our private sector mediation program: the confidence that employers and charging parties have in the program. Participant confidence in our program remains high, with our FY 2007 figures reflecting that 95.8% of all participants would return to EEOC’s Mediation Program in the future. This exceeds our target for Measure 2.5 of maintaining a 90% satisfaction rate. We believe this high confidence level helps with our continuing efforts to convince parties to charges, particularly employer representatives, of the value of the mediation approach. In addition, we are increasing our target for FY 2008 to 91% as we strive to establish a higher level of 95% by FY 2012.

Although participants almost uniformly view our mediation program favorably, the percentage of employers agreeing to mediate is considerably less than the percentage of charging parties agreeing to mediate. As part of our efforts to increase the participation of employers in the mediation program, we have encouraged employers to enter into Universal Agreements to Mediate (UAMs). These agreements reflect the employer’s commitment to utilizing the mediation process to resolve charges. Many employers entered into these agreements in FY 2007, resulting in 1,269 UAMs (154 National/Regional UAMS and 1,115 Local UAMs). This is a 15% increase from our FY 2006 level.

Federal Sector Mediation Program: Using Alternative Dispute Resolution (ADR) techniques to resolve workplace disputes throughout the federal government can have a powerful impact on agencies’ EEO complaint inventories and, in turn, the Commission’s hearings and appeals inventories. Resolving disputes as early as possible in the federal sector EEO process improves the work environment and reduces the number of formal complaints, allowing all agencies, including the EEOC, to redeploy resources otherwise devoted to these activities. In addition, a growing number of agencies have incorporated dispute prevention techniques into their ADR programs, further increasing productivity and reducing the overall number of employment disputes.

Data submitted by federal agencies at the close of FY 2006, the most recent data available, indicate that there were 38,824 instances of pre-complaint EEO counseling across the federal government. Of that number, the parties participated in ADR in 17,309 cases, or 44.6% of the time.

The Commission’s efforts in promoting and expanding mediation/ADR at all stages of the federal EEO complaint process also appear to be having a positive effect on federal agencies’ EEO complaint inventories, as the number of formal complaints filed in FY 2006 declined by 7.2% over the previous year. As more agencies expand their efforts to offer ADR during the informal process, we expect to see continued decreases in the number of formal complaints filed, which will reduce costs for complainants and all federal agencies, and enable agencies to focus resources on their primary missions.

EEOC continues to actively pursue a variety of ways to assist federal agencies in improving participation in alternative dispute resolution by identifying and sharing best practices, providing assistance in program development and improvements, providing training to federal employees and managers on the benefits of ADR, and maintaining a web page that serves as a clearinghouse for information related to federal sector ADR. We will continue to expand technical assistance efforts with agencies to encourage the development of effective ADR programs and promote ADR training among government managers and staff.


The Commission’s litigation program provides relief for victims of discrimination, many of whom have no other recourse, and also encourages employers to resolve cases in the EEOC’s administrative process before litigation is contemplated. In FY 2007, EEOC field legal units filed 336 "merits" lawsuits and 26 subpoena enforcement and other actions. Legal staff resolved 364 “merits” lawsuits for a total monetary recovery of $54,797,888 (“merits” lawsuits include direct suits and interventions alleging violations of the substantive provisions of the statutes enforced by the Commission and suits to enforce administrative settlements). Of these resolutions, 296 contained Title VII claims, 41 contained Americans with Disabilities Act of 1990 (ADA) claims, 35 contained Age Discrimination in Employment Act of 1967 (ADEA) claims, and 14 contained Equal Pay Act of 1964 (EPA) claims. The number of total merits suits is less than the sum of suits based on each individual law as some suits are filed on multiple bases. We also resolved 22 subpoena enforcement and other actions during the fiscal year. In terms of dollars recovered in direct, indirect and intervention lawsuits by statute, EEOC recovered $38,822,708 in Title VII resolutions, $3,075,969 in ADEA resolutions, $2,437,971 in ADA resolutions, $215,000 in EPA resolutions and $10,246,239 in resolutions involving more than one statute. At the end of FY 2007, the number of cases on the EEOC’s active docket that involve multiple aggrieved parties or challenges to discriminatory employment policies was 251 or 44% of our total year-end caseload. Refer to our website at for a fuller depiction of litigation statistics and year-by-year data comparisons.

In accordance with our modified Strategic Plan, we have begun to look beyond the number of suits filed and amount of dollars recovered to capture data on the number of individuals who benefited through improvements to organizations’ policies, practices and procedures made as a result of EEOC’s enforcement programs, including litigation. When we secure resolutions that bring about positive changes in the workplace, these changes benefit the entire workplace, not just people receiving some form of direct relief, such as money or a job. During FY 2007, we began to develop methodologies for calculating and tracking the number of individuals who benefit from such workplace changes. Our litigation data have been combined with data collected from the agency’s enforcement programs to establish our baseline value for Long Term/Annual Measure 1, and then we will gradually increase the number of individuals who benefit through a workplace impact each year. This measure will be driven largely by our systemic initiative, as cases of systemic discrimination result in wide-spread changes in the workplace that benefit large numbers of people.

As planned, the Office of General Counsel is staffing systemic cases using a national law firm model, drawing on the expertise of Commission attorneys in various district offices as needed. All systemic investigation and litigation now takes place in the field offices, and each district office has developed a plan to identify, investigate and litigate cases of systemic discrimination. The Commission’s systemic initiative has shown some early results. As the following chart indicates, in four major indicia of systemic litigation, the FY 2007 results constituted a significant increase from the previous fiscal year.

FY 2006 FY 2007

Commissioner charges signed



Suit filings with 20+ victims



Suit resolutions with 20+ victims



Suit resolutions with 100+ victims



The largest by far of the EEOC’s systemic cases this fiscal year was our suit against pharmacy giant Walgreen Co. Prosecuted under the national law firm model, the suit alleged that Walgreen’s discriminated against African-American retail management and pharmacy employees in promotion and assignment. After mediation, the parties agreed to a total of $20 million (plus attorneys’ fees) in payments to an estimated 10,000 class members. The consent decree, which is subject to a fairness hearing early next year, also resolves another lawsuit, which had been filed on behalf of 14 Walgreen’s employees, alleging similar claims. The decree establishes benchmarks, provides for independent oversight of implementation and compliance, and mandates the hiring of outside experts to improve Walgreen’s employment practices. The impact of this decree is far-ranging, and will benefit large numbers of employees now and in the future.

In Chicago, the EEOC filed suit against Woodward Governor Co., charging that the global engine systems company discriminated against African-Americans, Hispanics, Asians and women with respect to pay, promotions and training. The EEOC’s suit was the culmination of settlement efforts with the company, and a consent decree resolving the case was filed on the same day as the suit. Under the decree, $5 million in funds (plus attorneys’ fees) are being shared by 352 class members, which include both minority and female employees who worked at two Illinois plants. In addition, the decree provides for extensive injunctive relief, as well as independent oversight of implementation and compliance.

The EEOC resolved several other smaller scale cases of systemic discrimination this year, including the following: EEOC v. Quietflex (S.D. Tex.) (78 Latino production workers shared $2.8 million to resolve claims that the air conditioning duct manufacturer denied them entry into positions in more lucrative departments based on national origin); EEOC v. Trans Bay Steel, Inc. (C.D. Cal.) (48 Thai welders shared $1 million to resolve national origin discrimination claims that the steel company contracted workers under H2B visas and then confiscated their passports, restricted their movements, forced them to work without pay at local restaurants under threat of arrest and confined some of them to cramped apartments without electricity or water); EEOC v. Jeff Wyler Eastgate, Inc. (S.D. Ohio) (39 women shared $2.3 million to resolve claims that the auto dealer refused to hire them into sales jobs based on sex); EEOC v. Flushing Meadow Geriatric Center, Inc. (E.D.N.Y.) (29 black and Caribbean employees shared $900,000 to resolve claims that the rehabilitation center subjected them to racial harassment and prohibited them from speaking Creole while permitting other non-English languages to be spoken).

Outreach, Education and Technical Assistance

Our Strategic Objective also incorporates the concept that preventing discrimination is an important part of our mission. We briefly describe below some of the key outreach initiatives we conducted in FY 2007 and elaborate on them in the Performance Section of this report.

We educate employers and other members of the public about systemic discrimination, including trends and issues that the agency has identified and cases the agency has handled. Field and Headquarters offices participated in 5,658 educational, training, and outreach events during FY 2007, reaching 278,803 persons. We recognize the educational and deterrent value of publicizing our court victories, particularly the cases resolving systemic discrimination, because of the ripple effect such decisions can have on promoting changes both across the impacted industry and in related industries. In addition, we issued 765 press releases on our enforcement activities to further raise public awareness and encourage compliance.

In FY 2007, we promoted voluntary compliance with the federal equal employment laws to prevent or reduce discriminatory barriers to employment opportunities, including the promotion of individual awareness and understanding of rights and responsibilities under those laws. In FY 2008, we will continue our outreach, education, and technical assistance programs to meet the needs of diverse audiences and will partner with the employer community and other stakeholders to foster strategies to recognize and prevent discrimination in the workplace.

In the federal sector, the EEOC developed the LEAD (Leadership for the Employment of Americans with Disabilities) Initiative to address the declining number of employees with targeted disabilities in the federal workforce. This national outreach and education campaign includes seminars, educational events and focus group sessions to explore the issue of declining employment for individuals with severe disabilities and identify concrete solutions to address the problem.

We educate students and young workers about their workplace rights and responsibilities, including specific discussions on sexual harassment and how to seek assistance to address or report incidents of harassment that occur in the workplace. Through our Youth@Work Initiative, we reach out to schools and educators to share training materials and, as resources allow, develop and present training to teenagers about their workplace rights and responsibilities and assist these young workers as they enter and navigate through the workplace. Furthermore, we provide training and information to businesses that employ young workers to encourage them to proactively address discrimination issues confronting young workers.

We also provide guidance and information on employer “best practices” reflecting the agency’s strong interest in proactive prevention. This includes sharing the successes of the EEOC’s annual Freedom to Compete Award recipients, who have made strides in creating inclusive workplaces.

The EEOC also provides outreach to small businesses, especially those who lack the resources to maintain full-time professional human resources staff, and to stakeholders in under served communities across the nation, including those with limited English proficiency, such as recently arrived immigrants. We remain prepared to respond to unanticipated issues that arise in the workplace due to current events, so that the EEOC stays on the forefront in informing both employees and employers alike of their rights and responsibilities in the ever-changing workplace environment.

New Initiatives

In an effort to identify and implement new strategies that will strengthen its enforcement of Title VII and advance the statutory right to a workplace free of race and color discrimination, EEOC unveiled the E‑RACE (Eradicating Racism And Colorism in Employment) Initiative during its February 2007 Commission meeting. Through E-RACE, the EEOC will identify issues, criteria and barriers that contribute to race and color discrimination, explore strategies to improve the administrative processing and the litigation of race and color discrimination claims, and enhance public awareness of race and color discrimination in employment.

Federal Managers’ Financial Integrity Act (FMFIA)

The EEOC’s management controls and financial management systems were substantially sound during FY 2007, with the exception of one material weakness in information security controls that was identified in the previous fiscal year and findings of three financial non-conformances.

In FY 2006, an Office of Inspector General’s audit found a significant deficiency in the agency’s information security program under the Federal Information Security Management Act of 2002 (FISMA), primarily in areas regarding documentation and tracking processes. The Office of Management and Budget’s guidance (Circular A-123) required the agency to simultaneously identify a FISMA significant deficiency as a FMFIA material weakness. In its FY 2006 Performance and Accountability Report, the agency identified the deficiencies identified in the information security program as a material weakness and implemented a corrective action plan. We are pleased to report that the agency addressed all issues raised in the audit in FY 2007, resolving the agency’s one outstanding material weakness. No additional material weaknesses were identified during FY 2007.

In FY 2007, the agency corrected one of three financial non-conformances identified. All financial non-conformances were first identified in FY 2007. The agency has implemented corrective action plans to resolve the remaining nonconformances in FY 2008.

Since the agency resolved its one material weakness and one of only three financial non-conformances identified in the fiscal year, taking the agency’s controls environment as a whole, and based upon a review of comprehensive agency-wide materials, including audit reports, and the assurances of the agency’s senior managers, we conclude that our systems of management and financial controls during FY 2007 were effective and that agency resources were used consistent with the agency’s mission—in compliance with laws and regulations, and with minimal potential for waste, fraud, and mismanagement.

Financial Highlights

The Office of Management and Budget (OMB) Circular Number A-136 was used as guidance for the preparation of the accompanying financial statements. EEOC prepares four financial statements: the Consolidated Balance Sheets, Consolidated Statement of Net Cost, Consolidated Changes in Net Position, and the Combined Statement of Budgetary Resources. For FY 2007 the Consolidated Statement of Financing was moved to footnote 18 and renamed as Reconciliation of Net Cost of Operations to Budget per OMB Circular A-136. Outlined in the following section are the purpose of each statement, an explanation of any significant amounts, and an explanation of significant fluctuations between FY 2007 and FY 2006.

Consolidated Balance Sheets

The Consolidated Balance Sheets present amounts that are owned or managed by EEOC (assets); amounts owed (liabilities); and the net position of the agency divided between the cumulative results of operations and unexpended appropriations.

The FY 2007 cumulative result of operations shows a negative balance. This is due to amounts accumulated over the years by EEOC from financing sources less expenses and losses and an amount representing EEOC’s liabilities for such things as accrued leave and actuarial liabilities not covered by available budgetary resources. EEOC’s FY 2007 future funded annual leave balances and actuarial FECA liability totaled $26 million.

Consolidated Statements of Net Cost

The Consolidated Statements of Net Cost of Operations presents the gross cost incurred by major programs less any revenue earned. Overall, in FY 2007, EEOC’s Net Cost of Operation decreased by $6 million or 2%. The allocation of costs for FY 2007 shows that Private Sector resources used for Enforcement decreased by $4 million while the Federal Sector Program decreased by $2 million over the past fiscal year.

Consolidated Statements of Changes in Net Position

The Consolidated Statements of Changes in Net Position represent the change in the net position for FY 2007 and FY 2006 from the cost of operations, appropriations received and used, net of rescissions, and the financing of some costs by other government agencies. The Net Position improved over last year’s with a favorable $13 million increase. EEOC’s total asset exceeded total liabilities (funded and unfunded) by $16 million.

Combined Statements of Budgetary Resources

The Combined Statements of Budgetary Resources shows how budgetary resources were made available and the status of those resources at the end of the fiscal year. In FY 2007, EEOC received a $329 million appropriation, with no rescission. EEOC ended FY 2007 with an increase in total budgetary resources of $1 million over last year. Resources that remained unobligated at year end were $9 million and $8 million in FY 2007 and FY 2006, respectively. The unobligated balance not available represents expired budget authority from prior years that are no longer available for new obligations.

Use of Resources

The line chart below displays a 6-year historical view of EEOC’s use of resources. Compensation and benefits consumed the majority of the budget at 66%. The second and third greatest items were the payments to state and local FEPAs at 9%, and rent which also consumed 9% of the budget and is included in non-payroll costs.

Chart: EEOC Budget

The pie chart displays EEOC’s FY 2007 use of resources by major object class. The major portions: Compensation & Benefits, State & Local, and Rent and Utilities. Resources used for Information Technology as well as general operating expenses were consumed at the rate of 13%. Other agency programs (Litigation, ADR contracts, Outreach and the National Contact Center) were consumed at the lowest rate of 3%. In comparison to last year, compensation and benefits decreased by 3% over last year’s percentage of 69%.

Chart: EEOC Obligations

The dual axle chart that depicts EEOC’s compensation and benefits versus full-time equivalents (FTEs) over the past 6 years shows a decrease in both FY 2007 FTEs and compensation and benefits costs. Although, full-time equivalents in FY 2006 decreased in part by employees retiring or electing the early-outs option offered to employees eligible to retire, EEOC’s Congressional Budget retains its FTE ceiling of 2,381 in FY 2007. EEOC ended FY 2007 with 2,158 employees on board. (The current average salary is approximately $102,041, an increase of $16,000 or 19% of the FY 2003 average salary).

Chart: Compensation and Benefits versus Full Time Equivalent

This page was last modified on November 15, 2007.

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