Employment Discrimination Laws: Do They Cover All Companies?

Employment discrimination laws vary between federal and state legislation in the US. According to federal law, if a business has at least one employee, it is covered by the law that requires employers to provide equal pay for equal work to male and female employees. If a business has 15-19 employees, it is covered by laws that prohibit discrimination based on race, colour, religion, sex, national origin, disability, and genetic information. Businesses with 20 or more employees are covered by the same laws, with the addition of protection for age (40 or older). However, state laws may differ, with some prohibiting discrimination regardless of company size and covering additional factors such as marital status and sexual orientation.

Companies with 20+ employees

In the United States, employment discrimination laws apply to companies with 20 or more employees. These laws prohibit discrimination based on race, colour, religion, sex (including pregnancy, sexual orientation, and gender identity), national origin, age (40 or older), disability, and genetic information (including family medical history). Companies with 20 or more employees are also required by law to provide equal pay for equal work.

The US Equal Employment Opportunity Commission (EEOC) enforces these laws, which cover all private employers, state and local governments, and educational institutions. The Age Discrimination in Employment Act (ADEA) specifically covers private employers with 20 or more employees, while the Equal Pay Act (EPA) covers all employers subject to the Federal Wage and Hour Law (Fair Labor Standards Act).

It is important to note that state and local employment discrimination laws may also apply to your business. These laws may offer additional protections or cover categories not included in federal law, such as political affiliation, military discharge status, or public assistance status. Therefore, it is essential to refer to state and local government websites for more information on these laws.

To ensure compliance with anti-discrimination laws, companies with 20 or more employees should display a poster describing federal employment discrimination laws and inform employees about their rights. Additionally, they must retain employment records and, if applicable, complete and submit an EEO-1 Report to the EEOC and the US Department of Labor annually.

Equal pay for equal work

In the United States, the Equal Pay Act of 1963 (EPA) requires that men and women be given equal pay for equal work in the same establishment. The Act protects individuals of all sexes and covers virtually all employers. The jobs in question need not be identical, but they must be substantially equal in terms of skill, effort, and responsibility, and be performed under similar working conditions. All forms of pay are covered by the EPA, including salary, overtime pay, bonuses, stock options, profit-sharing, and benefit plans.

If there is an inequality in wages between men and women, employers must raise the wages of the lower-paid employee(s) to equalize pay but may not reduce the wages of other individuals. An individual alleging a violation of the EPA may go directly to court within two years of the alleged violation (or within three years in the case of a willful violation).

In addition to the EPA, there are other federal laws enforced by the U.S. Equal Employment Opportunity Commission (EEOC) that protect employees from compensation discrimination, including Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, and Title I of the Americans with Disabilities Act of 1990. These laws prohibit compensation discrimination on the basis of race, color, religion, sex, national origin, age, or disability.

The applicability of federal employment discrimination laws enforced by the EEOC depends on the number of employees a business has. If a business has at least one employee, it is covered by the law requiring equal pay for equal work for male and female employees. With 15-19 employees, businesses are covered by laws prohibiting discrimination based on race, color, religion, sex, national origin, disability, and genetic information. With 20 or more employees, businesses are also covered by laws prohibiting discrimination based on age.

State and/or local employment discrimination laws may also apply to businesses, and state and local government websites can provide information on these laws.

Discrimination based on race, colour, religion, sex, national origin, age, disability, and genetic information

Employment discrimination laws in the US apply to businesses with 15 or more employees. These laws prohibit discrimination based on race, colour, religion, sex, national origin, disability, and genetic information. Businesses with 20 or more employees are also covered by laws prohibiting age discrimination.

Discrimination Based on Race

Race discrimination involves treating someone (an applicant or employee) unfavourably because of their race or personal characteristics associated with their race, such as hair texture, skin colour, or facial features. It is unlawful to harass someone because of their race, and this can include racial slurs, offensive or derogatory remarks, or the display of racially offensive symbols. An employment policy that applies to everyone, regardless of race, can be illegal if it negatively impacts the employment of a particular race and is not necessary for the business.

Discrimination Based on Colour

Colour discrimination involves treating someone unfavourably because of their skin colour complexion. Like race discrimination, it is unlawful to harass someone because of their skin colour, and this can include offensive or derogatory remarks. Colour discrimination can also occur when an individual is treated unfavourably because they are associated with someone of a certain colour.

Discrimination Based on Religion

Religious discrimination involves treating someone unfavourably because of their religious beliefs or practices. The law protects those who belong to traditional, organised religions, as well as those with sincerely held ethical or moral beliefs. It is illegal to harass someone because of their religion, and this can include offensive remarks about their beliefs or practices. The law requires employers to reasonably accommodate an employee's religious beliefs or practices unless it causes a substantial burden on the business.

Discrimination Based on Sex

Sex discrimination involves treating someone unfavourably because of their sex, including their sexual orientation, gender identity, or pregnancy. It is unlawful to harass someone because of their sex, and this can include unwelcome sexual advances, requests for sexual favours, and other verbal or physical harassment of a sexual nature. Harassment can also include offensive remarks about a person's sex, including their sexual orientation, gender identity, or pregnancy. Employment policies that apply to everyone, regardless of sex, can be illegal if they negatively impact the employment of a certain sex and are not necessary for the business.

Discrimination Based on National Origin

National origin discrimination involves treating someone (an applicant or employee) unfavourably because of their country of origin, ethnicity, accent, or ethnic background. It is unlawful to harass a person because of his or her national origin, and this can include offensive or derogatory remarks about their background. An employer can only require an employee to speak fluent English if it is necessary for the job. An employer may not base an employment decision on an employee's foreign accent unless it interferes with their job performance.

Discrimination Based on Disability

Disability discrimination occurs when an employer covered by the Americans with Disabilities Act (ADA) or the Rehabilitation Act treats a qualified employee or applicant unfavourably because of a disability. The laws forbid discrimination in any aspect of employment, including hiring, firing, pay, promotions, and training. The ADA provides a broad definition of disability, including physical or mental conditions that substantially limit major life activities. The laws require employers to provide reasonable accommodations for employees or applicants with disabilities unless doing so causes undue hardship for the employer.

Discrimination Based on Genetic Information

Genetic information discrimination occurs when an employer uses genetic information, such as family medical history, to make employment decisions or unlawfully obtains or shares genetic information. It is illegal for employers to discriminate against or harass employees because of their genetic information or that of their relatives. Employers must keep genetic information confidential and separate from general employee files.

State and local employment discrimination laws

Most state anti-discrimination laws forbid discrimination related to race, religion, national origin, age, disability, and sex. Notably, protection against age discrimination is typically limited to employees who are 40 or older, consistent with federal law. Pregnancy is generally covered as well.

Many states also protect traits such as sexual orientation, gender identity and expression, and marital or familial status. Some state anti-discrimination laws go even further, covering additional characteristics beyond those mentioned.

State laws also vary in terms of the minimum number of employees required for a business to be subject to anti-discrimination laws. While some state laws cover employers of all sizes, others set a minimum number of employees, with 15 being the typical federal threshold.

Local anti-discrimination laws can also provide broader protections than federal laws, such as covering smaller employers or a broader range of traits.

In terms of enforcement, administrative agencies generally oversee the enforcement of state anti-discrimination laws, similar to how the Equal Employment Opportunity Commission (EEOC) enforces federal anti-discrimination laws. As such, the first step in a discrimination claim often involves filing a charge with the relevant state or local enforcement agency. However, in states that do not have an enforcement agency, employees may be able to file a lawsuit directly in court.

Remedies for discrimination under state and local laws can be both monetary and non-monetary. For example, an employer may be ordered to pay damages, hire, reinstate, or promote an employee. Damages may be capped or limited to certain types of harm, and rules regarding punitive damages vary by state.

It is important to note that state statutes also provide extensive protection from employment discrimination, with some laws offering similar protections as federal acts, while others provide protection to groups not covered by federal legislation.

Discrimination against applicants

In the US, the Equal Employment Opportunity Commission (EEOC) enforces federal laws prohibiting employment discrimination. These laws apply to all employers with at least one employee.

Under the laws enforced by the EEOC, it is illegal to discriminate against a job applicant because of their race, colour, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability, or genetic information.

Discrimination can occur in various ways during the recruitment process. For example, it is illegal for an employer to:

• Refuse to provide employment applications to people of a certain race.
• Base hiring decisions on stereotypes and assumptions about a person's protected characteristics.
• Require job applicants to take a test that is not necessary, related to the job, or excludes people based on their protected characteristics.
• Fail to provide reasonable accommodations for applicants with disabilities (e.g., providing a sign language interpreter), as long as it does not cause significant difficulty or expense for the employer.
• Publish job advertisements that show a preference for or discourage someone from applying because of their protected characteristics. For instance, seeking "females" or "recent college graduates" may violate the law by discouraging men and older individuals from applying.
• Recruit new employees in a way that discriminates against them because of their protected characteristics. For example, relying solely on word-of-mouth recruitment by a mostly Hispanic workforce may result in almost all new hires being Hispanic, which could be considered discriminatory.

Additionally, employers are prohibited from making pre-employment inquiries about an applicant's disability unless it is necessary for the job. Asking about an applicant's health or disability is generally not allowed unless there are specific requirements of the job that cannot be met with reasonable adjustments.

In the UK, similar protections exist against discrimination in recruitment. Employers must not state or imply in a job advertisement that they will discriminate against anyone, including by saying they cannot cater to workers with disabilities.

Furthermore, employers should only use phrases like "recent graduate" or "highly experienced" when these are actual requirements of the job. Asking for a candidate's date of birth is also only permitted if age is a requirement for the role, such as in selling alcohol.

Applicants are not required to disclose spent criminal convictions, and employers must treat such convictions as if they had not occurred. Trade union membership must also not be a factor in employment decisions.

In both the US and the UK, discrimination in the recruitment process is illegal, and employers can face legal consequences for violating these laws.

Frequently asked questions