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1996-08-23
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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 contracting for business with the federal
government are generally required to adopt affirmative
action programs in employment of minorities, women, the
handicapped, and Vietnam 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 federal 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 employees,
unless they work on government contracts or
subcontracts. 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
Uniformed Service All employers. No discrimination
Reemployment against any person
Rights Act on account of service
of 1994 in the military.
Required to rehire
after up to 5 year
absence for military
service.
Title VII of the Employers with 15 or No discrimination
Civil Rights Act more employees during in employment
of 1964 20 weeks of a calendar practices based
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 age
40 or older.
Rehabilitation Employers with No discrimination
Act of 1973 federal contracts of in employment
$2,500 or more. practices on account
of mental health
or physical
handicaps.
Vietnam Era Employers with Affirmative action
Veteran federal contracts programs for certain
Readjustment or subcontracts of disabled vets.
Assistance $10,000 or more.
Act of 1974
Veterans All employers No discrimination on
Re-employment account of military
Rights Act of service; must provide
1994 certain benefits
during absence;
reemployment required
after periods of
military service of
up to five years.
____________________________________________________________
. 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 discrimination. 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.
@IF099xx] NOTE REGARDING @NAME:
@IF099xx] --------------------------------------------------------
@IF099xx] Since you have only @EMP employees, your firm is not
@IF099xx] required to file Form EEO-1.
@IF099xx] --------------------------------------------------------
@IF099xx]
@IF100xx] NOTE REGARDING @NAME:
@IF100xx] --------------------------------------------------------
@IF100xx] Because your firm has @EMP employees, it is required to
@IF100xx] file Form EEO-1 annually.
@IF100xx] --------------------------------------------------------
@IF100xx]
. KEEPING RECORDS. 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 its own state
anti-discrimination laws, even more wide-reaching
than the federal laws, including local ordinances in
some communities, such as "gay rights" provisions
adopted in San Francisco, prohibiting discrimination
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. Sexual harassment is prohibited as a discriminatory
practice under state law.
@IF009xx] NOTE REGARDING @NAME:
@IF009xx] -------------------------------------------------------
@IF009xx] Because your business does not have 5 or more employees,
@IF009xx] you are not currently subject to the general provisions
@IF009xx] of the California fair employment laws.
@IF009xx]
@IF009xx] (@NAME has @EMP employees.)
@IF009xx] -------------------------------------------------------
@IF009xx]
@IF005xx] (NOTE: Your firm is subject to the California fair
@IF005xx] employment rules because the number of workers employed
@IF005xx] by @NAME is: @EMP.)
@IF005xx]
California has also adopted an age discrimination
law, similar to the federal law, which prohibits age
discrimination in employment against persons over 40
years old. Employees are entitled to 4 months pregnancy
leave under California law, and under the 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 ordinances 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, religion, color, ancestry, handicapped
status, marital status, or arrest and court record.
Likewise, Hawaii employers cannot deny re-employment or
otherwise discriminate against an employee because the
employee participated in ordered national guard service,
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
employment, 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 EMPLOYMENT 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 employment 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.