Misconceptions About the EEOC and the New Administration

In the wake of political transitions, it is common for misinformation to spread about how federal agencies like the Equal Employment Opportunity Commission operate. The EEOC plays a critical role in enforcing anti-discrimination laws, and with each change in administration, many assume its mission or structure dramatically shifts. The truth is more stable than the headlines suggest.

One of the biggest misunderstandings is the belief that the EEOC is directly controlled by the White House. In reality, the EEOC is an independent federal agency. It does not report directly to the president, and its leadership does not automatically change with a new administration. Commissioners serve staggered terms, meaning that the makeup of the commission is often a blend of appointments from multiple administrations. This structure protects the EEOC from political whiplash and allows for more consistent enforcement of civil rights laws.

A major concern that has surfaced recently is whether the EEOC still protects LGBTQ employees. Some believe the agency has backed away from enforcing those rights. That is false. The EEOC continues to enforce Title VII protections, which prohibit discrimination based on sex. This includes sexual orientation and gender identity, as affirmed by the Supreme Court in the landmark Bostock v. Clayton County decision in 2020. No administration can simply reverse a Supreme Court ruling. Any real change would require legislation or a new court decision, not political opinion.

Another misconception is that the EEOC is targeting diversity programs or working to dismantle affirmative action in the workplace. This idea likely stems from the Supreme Court decision in 2023 that struck down race-based affirmative action in college admissions. However, that ruling does not apply to private employers in the same way. The EEOC still permits diversity, equity, and inclusion programs, as long as they are voluntary and do not create discriminatory practices in reverse. What we are seeing now is not a crackdown on DEI but rather a review to ensure companies are not overcorrecting in ways that violate Title VII. This is not a new rule. It is a reflection of the agency doing its job: ensuring compliance across the board.

Some also believe the EEOC has stopped taking discrimination claims seriously. The data proves otherwise. In 2024 alone, charge filings increased significantly, especially in the areas of retaliation, disability discrimination, and sexual harassment. While the agency may shift some of its enforcement focus, like paying more attention to religious accommodations or free speech issues, its core function remains unchanged. Discrimination is still illegal. Employers are still accountable. And the EEOC is still investigating and enforcing the law.

Lastly, there is a rumor that the EEOC is being defunded or shut down altogether. That is not true. The agency remains fully operational and, in fact, received increased funding from Congress to reduce case backlogs and expand digital access. The idea that it could be dismantled by executive order is inaccurate. Any attempt to eliminate the EEOC would require legislative action, and no such bill is currently in motion.

What often changes between administrations is not the law itself, but the narrative. Priorities may shift. Language may evolve. Certain topics may be highlighted more than others. But the EEOC’s authority is rooted in federal law—the Civil Rights Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, and others. These laws are still in effect. The agency’s role is to enforce them regardless of political winds.

For employers and employees alike, understanding this structure matters. It prevents confusion, reduces fear, and helps everyone stay focused on compliance, fairness, and real protections. If you are unsure about what the EEOC currently prioritizes, or if you need help aligning your workplace policies with federal law, Stratum Labor Consulting is here to help.

Starting a Nonprofit: The Mission is Not the Only Battle

Starting a nonprofit is one of the most powerful commitments a person can make. It often begins with a deep sense of purpose, a personal connection to a cause, or a clear need you have witnessed in your community. The mission drives everything. It is the reason people show up without pay, give up weekends, and pour their energy into something that may not bring financial return. But what many founders learn quickly is that the mission alone is not enough. Starting a nonprofit is not just about passion, it is about paperwork, structure, patience, and pressure.

In the beginning, it is exciting. You choose a name. You envision the impact. You imagine the people you will help and the community that will benefit. But then reality settles in. You need to incorporate your organization. You need to register with your state. You need to create bylaws, form a functioning board, and apply for tax-exempt status. The learning curve is steep. The forms are tedious. The requirements are strict. It is not just about what you want to do, it is about proving you are capable of doing it legally and responsibly.

One of the first major hurdles is building internal structure. Most new nonprofit founders underestimate how much infrastructure is needed before operations even begin. You cannot just start accepting donations. You need clear fiscal policies. You need a separate business account. You need to track restricted and unrestricted funds, and you must be able to prove how every dollar was used. Without that, you put your tax-exempt status at risk before your work even takes off.

Then there is the board. On paper, every nonprofit must have one. But in practice, your board should be more than just names listed to meet a requirement. Board members must understand their legal responsibilities, including financial oversight, compliance, and governance. They must be involved, accountable, and aligned with the mission. If they are not, the nonprofit will suffer. Leadership structure is not a suggestion, it is the backbone of the organization.

Many founders also do not realize how much employment structure matters, even if you are the only person involved. If you plan to grow, apply for grants, or take on volunteers or part-time staff, you must have written policies. That includes a handbook, job descriptions, codes of conduct, anti-discrimination policies, and clear procedures for handling complaints and conflicts. Without them, your nonprofit is vulnerable to lawsuits, miscommunication, and damaged credibility.

Audits are another hidden challenge. Many new nonprofits think audits are only for large or well-funded organizations. That is not true. If you receive over a certain amount in government or grant funding, you are required to undergo an audit. If your records are not in order, or if your policies do not align with your actual practices, you may lose funding or even be required to repay it. And once you have failed an audit, it becomes part of your public record, which can harm your chances of future support.

And then there is burnout. Starting a nonprofit is emotionally draining. You are expected to be the founder, the fundraiser, the HR department, the bookkeeper, and the public face of the mission all at once. You are dealing with people who need help, slow systems, and regulations that do not always make sense. It is easy to lose energy and motivation when it feels like the barriers outweigh the progress. That is when good structure saves you. When your systems are solid, your policies are clear, and your documentation is in place, you can step back without losing control.

The truth is, building a nonprofit is not easy. It is not quick. It is not glamorous. But it is worth it. If done right, it can become one of the most impactful things you've ever done. The people you serve may never see the board meetings, the budget reports, or the compliance checklists, but the strength of your foundation is what allows your mission to reach them at all.

At Stratum Labor Consulting, we help new and growing nonprofits build that foundation. From developing internal policies and onboarding tools to reviewing handbooks, contracts, and operational systems, we give organizations the tools they need to stay protected, stay compliant, and stay focused on their mission. If you are starting a nonprofit and feel overwhelmed or unsure of the next step, reach out. We know what it takes to turn your mission into a movement that lasts.

FEDERAL AND STATE AUDITS

The Real Cost of a Poorly Managed Nonprofit Audit

Most nonprofits think of audits as a necessary routine. Something to get through. A box to check to keep funding secure and leadership confident. But when audits are poorly managed or treated like an afterthought, the consequences can be far more damaging than a bad review or a delayed response. A failed audit can put your entire organization at risk.

Many organizations do not realize how much ground an audit actually covers. It is not just about financial records or spending reports. Auditors look closely at your policies, employee files, handbooks, board governance practices, and internal controls. They are looking for consistency, structure, and evidence that your nonprofit knows what it is doing and is operating in good faith. When even one of those elements is incomplete or outdated, it can trigger more scrutiny than most nonprofits are prepared for.

If your nonprofit accepts federal funding and does not follow required federal guidance, you could lose future eligibility. If your restricted funds are poorly tracked, you may be forced to repay those amounts even if the money is already spent. If you skip internal audits or informal reviews throughout the year, the chances of failing an external audit skyrocket. And when you fail an audit, it becomes public record. Donors see it. Grantors see it. The community sees it. That kind of visibility can damage trust and make recovery even harder.

The penalties do not stop at lost funding. A poorly managed audit can also lead to IRS penalties, reputation loss, and in extreme cases, the revocation of your tax exempt status. Nonprofits that ignore their internal operations and treat compliance like an afterthought are putting everything they have built on the line.

If your nonprofit has not updated its handbook, reviewed employee files, or verified how policies are being enforced across teams, now is the time. Do not wait for an auditor to find the problem. Identify it first, fix it, and document your process. That alone can mean the difference between passing and failing.

Audits are not just a formality. They are a reflection of your nonprofit’s credibility. Treat them like a leadership tool and not just a paperwork burden. Funders do not just want to know you care about the mission. They want to see that you run your organization like it matters.

If you need support preparing for an audit, reviewing your internal documents, or simply getting organized before the next funding cycle, reach out. We help nonprofits get audit ready with policies that hold up under pressure and systems that make sense.

Verification > Trust

When I first got into HR, I believed trust was something you offered right away. A handshake, a smile, a strong resume. But over time, I learned that trust is not where you begin. It is something that grows from consistency, structure, and verification.

I once worked with a business that hired a manager based purely on how well they interviewed. No skill assessments. No deep background checks. Just a good feeling. Within a month, things started falling apart. Deadlines were missed, complaints rolled in, and the team dynamic shifted in a way that was hard to fix. It cost them time, money, and employees.

That experience stuck with me. It reminded me that trust without a foundation is just a gamble. If you want to build a strong team, you have to start with clear expectations, accountability, and follow-through.

For any business owner or leader, here is what matters. Create hiring processes that are repeatable and fair. Use proper documentation for policies and communication. Do not assume someone understands what is expected unless you have made it clear in writing. And when concerns come up, respond quickly and professionally with facts, not emotion.

At Stratum Labor Consulting, this is exactly what we help our clients do. We build smart systems to earn trust in your workplace, not assume it. We put structures in place that reduce risk, protect your people, and keep your business safe from unnecessary legal trouble.

Trust is important, but it cannot be based on hope. It should come from action, clarity, and verification every step of the way.

-STRATUM LABOR CONSULTING, LLC.