New EEOC Lawsuit Cites Employer for Anti-American Bias: $1.4M Payout

We recently gave you a heads-up about all the EEOC changes since President Trump returned to the White House. 

One notable change: Trump appointed Andrea Lucas as Acting Chair of the EEOC. Shortly after Lucas assumed control, she outlined her vision for the agency.  

Among other things, Lucas said that she planned to prioritize protecting American workers from anti-American bias because it amounts to national origin discrimination.

First Lawsuit, Settlement of Trump’s EEOC

Last week, an EEOC press release announced the settlement of a lawsuit that was filed on Valentine’s Day. It’s the first resolution of enforcement action since Lucas took the helm. Here’s what happened:

Lawsuit Alleges Anti-American Bias

LeoPalace Guam Corporation, d/b/a LeoPalace Resort, is a major hotel and resort on the U.S. territory of Guam. 

According to the EEOC, LeoPalace provided non-Japanese employees – including several former employees of American national origin – with less favorable wages, benefits and other conditions of employment than it provided employees from Japan in similar positions.

In the EEOC’s view, the alleged conduct violated Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment because of national origin. Last week, the agency filed a lawsuit against LeoPalace in the District Court of Guam on Feb. 14.

“Federal anti-discrimination laws ensure equal employment opportunity for jobs performed by all workers regardless of national origin,” Lucas said in a statement. “The President’s Executive Order on Ending Illegal Discrimination and Restoring Merit-Based Opportunity recognizes that the longstanding federal civil rights laws serve as a bedrock to support equality of opportunity for all Americans. This case is an important reminder that unlawful national origin discrimination includes discrimination against American workers in favor of foreign workers.”

Employer Pays $1.4M to Settle the Dispute

LeoPalace has agreed to pay $1.4 million to the affected workers and provide additional relief. Under a three-year consent decree, the company must hire an external EEO monitor to: 

• Oversee compliance and training
• Review policies and procedures
• Oversee the reinstatement of former employees who are interested in going back to work at LeoPalace, and
• Conduct periodic audits and submit reports to the agency.

“We commend LeoPalace Guam in choosing to resolve this matter early and for adopting proactive measures to prevent discrimination in the workplace,” said Anna Park, regional attorney for the EEOC’s Los Angeles District, which includes Guam in its district.

But the story doesn’t end there.

EEOC ‘Puts Employers on Notice’ About Anti-American Bias

The day after the LeoPalace settlement was announced, the EEOC issued a press release titled, “EEOC Acting Chair Vows to Protect American Workers from Anti-American Bias.”

The press release contained an announcement and several quotes attributed to Lucas. In part, it read: “The EEOC is putting employers and other covered entities on notice: if you are part of the pipeline contributing to our immigration crisis or abusing our legal immigration system via illegal preferences against American workers, you must stop.”

Moreover, Lucas said she views anti-American bias as “a large-scale problem in multiple industries nationwide.”

“To help educate the public and deter unlawful conduct, it is important for the EEOC to cut to the chase,” Lucas explained. She shared examples of what anti-American bias looks like. 

EEOC: 4 Common, But Illegal Excuses for Anti-American Bias

According to the EEOC, many employers offer common excuses for why they may prefer non-American workers – but those reasons are illegal under Title VII. Specifically, the EEOC listed the following four illegal “excuses for why [employers] may prefer non-American” employees:

1. Reduced labor costs, whether due to paying illegal immigrants “under the table” or exploiting rules around certain visa-holder wage requirements, etc.
2. Preferring to hire a workforce perceived as more easily exploited, in terms of the group’s lack of knowledge, access, or use of wage and hour protections, anti-discrimination protections, and other legal protections.
3. To align with customer or client preference.
4. Biased stereotypical perceptions that foreign workers are more productive or have a better work ethic than American workers.

The press release wraps up with Lucas reiterating her intention to focus on protecting Americans from anti-American bias: “The EEOC is going to rigorously enforce the law to protect American workers from national origin discrimination,” she said. 

As a reminder, in FY 2024, EEOC lawsuits were primarily focused on:

• Sex-based claims (46.8%)
• Disability claims (43.2%), and
• Retaliation claims (38.7%).

During that period, just 5.4% of EEOC lawsuits alleged national origin discrimination — one of the lowest-ranked categories in the agency’s annual report.

We’ll keep you posted.