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@108 CHAP 5
┌───────────────────────────────────────────────┐
│ FAIR EMPLOYMENT LAWS AFFECTING SMALL BUSINESS │
└───────────────────────────────────────────────┘
As an employer, you need to be alert to your obligations under a number
of federal and state laws that prohibit discrimination in employment on
the basis of sex, age, race, color, national origin, religion, or on
account of mental or physical handicaps. These anti-discrimination laws
are not just limited to hiring practices, but relate to almost every
aspect of the relationship between employer and employee, including
compensation, promotions, type of work assigned and working conditions.
In addition to outlawing discrimination in employment, companies con-
tracting for business with the federal government are generally
required to adopt affirmative action programs in employment of minori-
ties, women, the handicapped, and Viet Nam veterans. Affirmative action
programs (actively seeking to hire persons from those groups) are not
generally required if your firm is not a government contractor.
Federal anti-discrimination requirements that you should take note of
as a small business owner are summarized briefly below.
. EMPLOYERS SUBJECT TO FEDERAL ANTI-DISCRIMINATION LAWS. The fed-
eral anti-discrimination laws (other than the requirement that
women receive equal pay for equal work, as compared to men)
generally do not apply to small firms with less than 15 em-
ployees, unless they work on government contracts or subcon-
tracts. The various major federal enactments include:
________________________________________________________________
NAME OF LAW EMPLOYERS WHO WHAT THE LAW
ARE COVERED REQUIRES
________________________________________________________________
Civil Rights Act All employers. No discrimination
of 1966 based on race or
national origin
Title VII of the Employers with 15 or No discrimination
Civil Rights Act more employees during in employment
of 1964 20 weeks of a calen- practices based
dar year. on race, religion
or national origin
Pregnancy Same as for Title VII Equal treatment
Discrimination above. for pregnant women
Act and new mothers for
employment-related
purpose, including
fringe benefits.
Executive Order Employers with No discrimination
11246 as amended federal contracts or in employment
sub-contracts of practices based on
$10,000 or more. race, sex,
color, religion or
national origin.
Equal Pay Act Nearly all employers Equal pay for
of 1963 with two or more women.
employees.
Age Discrimination Employers with 20 or No discrimination
in Employment more employees, 20 in hiring or firing
Act of 1967 or more weeks in a on account of age,
calendar year. for persons from age
40 to 70.
Rehabilitation Employers with No discrimination in
Act of 1973 federal contracts of employment practices
$2,500 or more. on account of mental
health or physical
handicaps.
Vietnam Era Employers with Affirmative action
Veteran Readjust- federal contracts programs for certain
ment Assistance or subcontracts of disabled veterans.
Act of 1974 $10,000 or more.
________________________________________________________________
. FORMAL COMPLIANCE REQUIREMENTS. There is very little in the
way of filling out forms and other paperwork required of small
businesses in connection with the federal laws against job dis-
crimination. However, if you are subject to any of the above
laws, there are government posters for each that you must obtain
and post in your workplace. Also, an employer with more than
100 employees must file Form EEO-1 with the Equal Employment
Opportunity Commission each year. In addition, as an employer
you are required to keep detailed records (and should anyway,
for your own protection) as to reasons for hiring or not hiring,
promoting or not promoting, any employee or job applicant, in
the event it is ever necessary to demonstrate that your firm
has not discriminated against any group or individual member of
a particular group in violation of federal or state laws.
@CODE: CA HI RI MA WS
@CODE:NF
@CODE:OF
@CODE: CA
. CALIFORNIA REQUIREMENTS. California has anti-discrimination
laws that are even more wide-reaching than the federal laws,
including local ordinances in some communities, such as "gay
rights" provisions adopted in San Francisco, prohibiting dis-
crimination based on sexual preference.
California's fair employment laws apply to any employer that
regularly employs 5 or more persons, making it illegal for an
employer to discriminate because of race, color, religious creed,
national origin, ancestry, physical handicap, medical condition,
marital status, or sex. California has also adopted an age dis-
crimination law, similar to the federal law, which prohibits age
discrimination in employment against persons over 40 years old,
but with no upper age limit. Employees are entitled to 4 months
pregnancy leave under California law, and under the recent Family
Rights Act of 1991, may also take an additional month to care for
a newborn child.
In addition, both Los Angeles and San Francisco have enacted or-
dinances that prohibit discrimination against persons with AIDS,
in employment situations and otherwise. (Los Angeles Ordinance
#160289 and San Francisco Ordinance #49985)
@CODE:OF
@CODE: HI
. HAWAII REQUIREMENTS. Hawaii has its own state laws prohibiting
discrimination in employment on account of race, sex, age, re-
ligion, color, ancestry, handicapped status, marital status, or
arrest and court record. Likewise, Hawaii employers cannot deny
re-employment or otherwise discriminate against an employee be-
cause the employee participated in ordered national guard ser-
vice, and cannot legally discharge or refuse to hire an employee
because the employee's income has been assigned for child support
obligations.
Lie detector tests cannot be required as a condition of employ-
ment, nor can refusal of an employee to take a lie detector test
be used as a basis for discriminating against an employee in any
way.
Before conducting job interviews or developing job application
forms, you should obtain a copy of the very helpful pamphlet,
"A GUIDE FOR APPLICATION FORMS AND INTERVIEWS UNDER THE EMPLOY-
MENT PRACTICES LAW." It will inform you of many of the do's and
don'ts of the hiring process, so you won't inadvertently violate
Hawaii's stringent anti-discrimination laws.
@CODE:OF
@CODE: RI
. RHODE ISLAND REQUIREMENTS. Rhode Island has its own fair employ-
ment laws, which are modeled after the federal laws. However,
the Rhode Island laws apply to any employer who employs 4 or more
employees (unlike the federal laws, which mostly apply only to
employers of 15 or more). Also, Rhode Island law requires equal
employment opportunity for mentally and physically handicapped
persons.
@CODE:OF
@CODE: HI MA WS
. @STATE is one of the few states that has enacted a "gay
rights" law, prohibiting discrimination in employment based on
sexual orientation.