Is Your Small Business Responding to an EEOC Charge in Texas? Hire an Outside Attorney to Help

Receiving an Equal Employment Opportunity Commission (EEOC) charge is a daunting experience for any small business, particularly in Texas where employment laws, Texas and federal, can be complex and sometimes employee-friendly. When a current or former employee files a charge alleging discrimination, harassment, or retaliation, the business HR department must act immediately to avoid costly, long-term litigation. A charge does not mean the company is guilty, but it does initiate a formal investigation requiring a structured response, often referred to as a Position Statement. For small businesses lacking a robust, in-house legal team, navigating the 30-day response deadline requires immediate, strategic action and careful documentation.

The first step in handling an EEOC charge in Texas is to avoid the temptation to handle it alone or to immediately contact the employee, as this can lead to accidental retaliation charges. Instead, businesses should immediately preserve all evidence, including emails, text messages, surveillance footage, and personnel files, by implementing a litigation hold to prevent data destruction. This is crucial because, in Texas, EEOC investigators will demand detailed, documented evidence to support the employer’s version of events. Once the charge is received, it is highly recommended to engage an outsourced employment attorney specializing in Texas employment law to review the allegations and guide the internal investigation.

An outsourced attorney provides specialized expertise that internal HR teams may lack, particularly in managing the delicate balance between transparency and protecting the company's legal interests. Outsourced counsel can help draft a strong, persuasive position statement that addresses each allegation, provides necessary evidence, and explains the legitimate, non-discriminatory reason for the adverse action. This, coupled with a thorough, well-documented, internal investigation, significantly improves the chances of a favorable outcome. In Texas, a well-drafted position statement often leads to an early dismissal of the charge or positions the company for a favorable settlement.

For Texas businesses, utilizing an outsourced attorney is particularly beneficial in negotiating with the EEOC during the mediation or settlement process. The EEOC often invites both parties to participate in mediation to resolve the charge quickly, which is a confidential process and often faster than a formal investigation. An experienced attorney can guide the small business through the mediation process, ensuring that the company’s rights are protected while seeking a cost-effective resolution that avoids a lawsuit. If mediation fails, the attorney will handle all communication with the investigator and ensure that the response adheres strictly to federal and state regulations.

Another critical advantage of using an outsourced attorney is the ability to manage the risk of retaliation, which is the most commonly filed charge. The attorney will help ensure that the complainant is treated fairly during the process and that no actions are taken that could be construed as retaliation, such as demotions, pay cuts, or unfavorable schedule changes. They will also guide HR on how to properly handle any, and all, further complaints that may arise during the investigation, which is a common pitfall for small businesses.

When dealing with a Texas-based EEOC charge, the attorney can help navigate the specific nuances of the Texas Commission on Human Rights Act (TCHRA) and ensure compliance with Texas employment laws, as many of these laws align with federal guidelines, but have specific, unique procedures. By outsourcing, businesses can ensure they are not missing key deadlines, such as the 180-day filing deadline that can sometimes be extended to 300 days depending on the nature of the claim. This specialized legal guidance helps to protect the company's reputation and financial stability, which can be threatened by a poorly managed, public complaint.

In most instances, when a small business in Texas is served with an EEOC charge, bringing in an outsourced attorney immediately is the best way to handle the situation efficiently and effectively. While the process is stressful, it does not have to be ruinous. By focusing on preserving evidence, conducting a professional, documented internal investigation, and allowing a legal expert to guide the communication and response with the EEOC, a small business can navigate the challenge and emerge stronger, often without the need for litigation.

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