Employment Discrimination


EMPLOYMENT DISCRIMINATION

There are numerous laws that are applicable to small business employers that prohibit discrimination against certain classifications. The key federal antidiscrimination statutes that pertain to small businesses are described below. Employers must be familiar with these provisions in order to comply with the law and avoid potential liability. Many states and local governments have enacted laws that are similar in scope to the following federal statutes. In fact, some of the state and local legislation may protect additional classifications that are not protected at the federal level (e.g., sexual orientation and marital status). Accordingly, business owners should survey the employment-related laws in each location where they have employees or anticipate competing for work.
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
The Equal Employment Opportunity Commission (EEOC) is the agency responsible for enforcement of various federal laws that prohibit employment discrimination, including Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with disabilities Act, and the Equal Pay Act. The EEOC’s responsibilities entail acceptance and investigation of complaints, known as charges of discrimination, filed by employees and other affected persons. The EEOC also has the authority to file lawsuits in cases where it determines that there is cause to believe discrimination has occurred. Prior to filing a lawsuit, however, many state and federal civil rights laws require individuals to file a Charge of Discrimination with the EEOC or state agency, and to observe other technical requirements prior to initiating litigation.
TITLE VII OF THE CIVIL RIGHTS ACT OF 1964
Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, prohibits employers from discriminating against employees or applicants on the basis of race, color, religion, sex, or national origin, unless the employer can establish that discrimination based on one of the foregoing factors is a bona fide occupational qualification. Title VII also prohibits employers from retaliating against an employee based upon activity that is protected under the Act, such as making complaints regarding discrimination or participating in an investigation involving allegations of discrimination.
THE AMERICANS WITH DISABILITY ACT
The Americans with Disability Act (ADA) was enacted by Congress in order to ensure that qualified individuals with disabilities are given the same employment opportunities as those provided for individuals without disabilities. The ADA covers employers with 15 or more employees who engage in an industry affecting commerce. An employee includes any agent who acts on behalf of the employer, including those individuals used to conduct background checks.
Under the ADA, the term “disability” has three alternative meanings: 1) a physical or mental impairment that substantially limits one or more of the major life activities of the individual; 2) a record of such impairment; or 3) being regarded as having such impairment. It is important to note that an employer can be held liable for a violation of the Act if it acts in a manner that it regards an employee as having a disability, even if the employee, in fact, does not suffer from a disability within the meaning of the Act.
In order to be protected under the provisions of the ADA, an employee must be an individual with a disability and qualified to perform the responsibilities of the job he holds or desires, with or without reasonable accommodation. An undue hardship for the employer may result if the nature and cost of reasonable accommodation is too great for the size and structure of the company, and/or its financial resources. If such undue hardship can be demonstrated, an employer may be excused from accommodating the disability.
AGE DISCRIMINATION IN EMPLOYMENT ACT
The Age Discrimination in Employment Act (ADEA) protects employees and applicants who are over age 40 from discrimination on the basis of age. In 1990, Congress amended the ADEA by enacting the Older Workers Benefit Protection Act of 1990 (OWBPA), providing guidelines for settlement or waiver of ADEA claims. Among other guidelines, the OWBPA requires employers to justify any decrease in benefits offered to employees within the protected age classification in comparison with employees who are not protected by the Act. Employers can defend allegations of age discrimination if it can demonstrate that the individual’s age is simply incidental to other factors that are reasonably necessary to the normal operation of the business.
EQUAL PAY ACT
The Equal Pay Act (EPA) prohibits employers from differentiating between employees on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which the employer pays wages to employees of the opposite sex. The EPA provides for limiting exceptions under circumstances where such disparate payments are made pursuant to 1) a seniority system; 2) a merit system; 3) a system that measures earnings by quantity or quality of production; or 4) a differential based on any factor other than sex.
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