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Agreement Reached during Mediation Allegedly Breached by New Orleans Towing Company

Wednesday, November, 28, 2018

An agreement reached during mediation has allegedly been breached by a New Orleans towing company, according to the US Equal Employment Opportunity Commissions (EEOC). The agency has filed a lawsuit against the company and received no response after accusing it of the breach. The company is accused of discriminatory acts against pregnant employees.


The EEOC filed judgment in a US District Court against TRU Towing. According to the claim, the company breached a mediation settlement agreement in which it had agreed to pay more than $5000 to a former employee who claimed to have been a victim of discrimination. Agreements reached during mediation and approved by the court system are binding and treated the same as regular court rulings, as long as both sides agree to the settlement before entering into it.


According to an attorney from the EEOC, the agency fulfills a vital role in enforcement of mediation agreements and “will not tolerate intentional breaches by any company who participates in the EEOC mediation program as it invalidates the program.” The claim filed against the company is an attempt to “send a clear message” that the agency will do all it can to ensure compliance with settlement agreements. The goal is to ensure discrimination victims “remain confident” that relief will come their way when they follow procedure and rely on EEOC mediation.


The mediation session took place about a year ago and resulted in TRU agreeing to the process and the settlement in January 2018. However, the company refused to make the settlement payment, so the EEOC sought enforcement of the agreement via the court system.