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EEOC Sues Midwest Freight Systems for Breach of Mediation Agreement

Company Refused to Honor Agreement to Pay Monetary Relief to Charging Party, Federal Agency Charges

DETROIT - Midwest Freight Systems Corporation, a freight transportation company with headquarters in Warren, Mich., violated federal law by failing to comply with its obligations under a mediation settlement agreement which resolved two employment discrimination charges, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed on August 25, 2016.

According to EEOC's lawsuit, on May 10, Midwest Freight Systems entered into a mediation settlement agreement with EEOC and the discrimination victim, Max Doggett. The mediation agree­ment resolved two charges against the company - the first of which alleged race and age discrimin­ation, followed by a retaliation charge filed after Doggett was terminated. Under the agreement, Midwest Freight Systems promised to pay Doggett $7,500 in monetary relief. However, the day after signing the agreement, Midwest Freight Systems informed EEOC that it would not honor the agree­ment or pay any compensation to Doggett. EEOC contends that the company's actions constitute breach of the settlement agreement.

EEOC's suit (EEOC v. Midwest Freight Systems Corp., Civil Action No. 2:16-CV-13079, filed in U.S. District Court for the Eastern District of Michigan) seeks enforcement of all terms of the medi­ation agreement, including the obligation to pay $7,500 to Doggett.

"An employer's refusal to honor a voluntary mediation agreement is a rare occurrence," said EEOC Senior Trial Attorney Omar Weaver. "After reasonable efforts to obtain voluntary compliance, EEOC had no choice but to seek court intervention to enforce the agreement."

The Detroit Field Office is part of the Indianapolis District Office, which oversees Michigan, Indiana, Kentucky and parts of Ohio.

EEOC is the federal agency that enforces federal laws prohibiting employment discrimination. Further information about EEOC is available on the agency's website at www.eeoc.gov