EEOC Mediation and Settlement: FAQs for Employers

Written by Jenny Barnes | Jun 24, 2025 1:00:00 PM

EEOC-mediation (1)

When your company receives a charge of discrimination from the Equal Employment Opportunity Commission (EEOC), your first instinct may be concern—or even confusion. What does the EEOC process entail? Should you settle? How much time or money will this take?

Fortunately, not all charges escalate to litigation. In fact, the EEOC’s voluntary mediation program offers a way to resolve disputes quickly and confidentially—often with better outcomes for both parties.

In this post, we’ll walk through everything employers need to know about EEOC mediation, how it differs from investigation and litigation, and when settlement may be your smartest move.

What Is EEOC Mediation?

EEOC mediation is a voluntary, confidential process that allows an employer and employee to resolve a discrimination charge without a lengthy investigation or lawsuit. A neutral third-party mediator facilitates the conversation, but does not make decisions or assign blame.

✅ No admission of guilt is required
✅ Faster resolution (typically 3–4 hours)
✅ Saves time, money and internal stress

According to the EEOC, more than 70% of mediated cases are successfully resolved, with the average mediation costing far less than formal litigation or even drawn-out investigations.

Who Qualifies for Mediation?

Mediation is typically offered soon after a charge is filed, assuming:

The case is appropriate for early resolution (i.e., not involving multiple parties, class-action claims or clear bad faith)
Both the employer and employee agree to participate
There is no ongoing internal investigation that would conflict with the mediation

If the EEOC offers mediation and either party declines, the charge will move forward to the standard investigation process.

Why Should Employers Consider Mediation?

From an employer’s standpoint, EEOC mediation offers several strategic advantages:

1. Protects Confidentiality

Unlike public lawsuits, mediation keeps the dispute private—safeguarding your company’s reputation and internal morale.

2. Minimizes Legal Fees

Even if you ultimately prevail, defending against a charge can be expensive. Mediation reduces legal exposure and associated costs.

3. Retains More Control

In mediation, you help shape the outcome. There’s no judge or jury. The parties decide on mutually acceptable terms.

4. Avoids Disruption

Litigation can drag on for months or years. Mediation wraps up quickly, allowing your team to focus on business instead of distractions.

What Happens During the Mediation?

Here’s what to expect if you opt in:

Introduction & Ground Rules

The mediator explains the process and confirms that both parties understand it’s voluntary and confidential.

1. Each Party Shares Their Perspective

The charging party (employee) presents their concerns. Then the employer shares its view and any context.

2. Joint or Private Discussion

The mediator may separate the parties into different rooms (“caucusing”) to explore options confidentially.

3. Negotiation & Resolution (Optional)

If both sides reach a resolution, the mediator helps document a voluntary settlement agreement. This is a legally binding contract and ends the EEOC’s involvement.

What Is an EEOC Settlement?

An EEOC settlement is a voluntary agreement reached between an employer and a charging party to resolve a discrimination claim. Settlements can happen:

During mediation
During investigation
After the EEOC finds cause
Or even before a formal charge is filed

Employers often choose to settle not because they believe they’ve done anything wrong, but to avoid risk, reputational harm and legal costs.

Common Terms of EEOC Settlements

An EEOC settlement may include:

Monetary compensation (e.g., back pay or damages)
Job reinstatement
Training requirements for staff or managers
Updated company policies or practices
A neutral reference agreement

💡 Settlements made during mediation are confidential, while those after an EEOC finding may be public.

EEOC Mediation vs. EEOC Investigation

If you’re on the fence about whether to mediate or proceed with a standard EEOC investigation, this chart breaks it down:

Feature	EEOC Mediation	EEOC Investigation
Voluntary?	Yes	No
Timeframe	Often resolves in weeks	Can take 10+ months
Confidential?	Yes	Yes, but investigation may escalate
Cost	Minimal	High (legal fees, time, resources)
Outcome Control	High, parties decide	Low, EEOC or courts decide
Admits Fault?	No	Possibly, if findings go against employers
Binding?	Only if parties agree to terms	Binding only if court-ordered or settlement is reached

EEOC Mediation FAQs for Employers

Can an employee decline EEOC mediation?

Yes. Mediation is voluntary for both parties. If either the employee or employer declines, the case proceeds to a standard EEOC investigation.

How long does EEOC mediation take?

The average mediation session takes 3 to 4 hours. Most cases are resolved in under three months—much faster than the 10+ months a full investigation or litigation might take.

Are EEOC mediations usually successful?

Yes. In FY 2020, over 69% of EEOC mediations ended in resolution. That means nearly 7 in 10 cases reached a mutually acceptable outcome.

What’s the average EEOC settlement amount?

The EEOC doesn’t publish exact averages, but FY 2020 data shows $156.6 million awarded across 6,272 resolved cases—about $25,000 each. Keep in mind, not all settlements include monetary compensation.

Is EEOC mediation free?

Yes. It’s free for both parties. Employers and employees may choose to bring legal counsel, but it’s not required.

Is EEOC mediation confidential?

Absolutely. Mediation sessions are private, not recorded or transcribed, and participants must sign confidentiality agreements.

Is a settlement final and binding?

Yes. If the parties reach a resolution, they sign a legally binding agreement. A charge can only be reopened under narrow circumstances, such as fraud or breach of terms.

Should an employer ever opt out of mediation?

It’s allowed—but generally not advised. Even if you believe the charge lacks merit, mediation gives you insight and an opportunity to resolve the matter privately. At Axcet, we usually recommend participating.

Axcet HR Solutions: Helping Employers Navigate EEOC Mediation

At Axcet HR Solutions, our certified HR experts have helped countless small and mid-sized businesses successfully resolve EEOC charges through strategic preparation, policy guidance and compassionate communication.

As a certified professional employer organization (CPEO), we offer more than just paperwork support—we become your partner in risk mitigation and employee relations.

Facing an EEOC charge? Contact us for experienced, confidential guidance.

To learn more about how Axcet HR Solutions can help, schedule a consultation with a member of our team today.

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