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1992-10-01
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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 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 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 emplo-
yees, 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
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 na-
tional 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 fir-
Act of 1967 or more weeks in a ing on account of
calendar year. age, for persons
age 40 or older.
Rehabilitation Employers with No discrimination
Act of 1973 federal contracts of in employment prac-
$2,500 or more. tices on account
of mental health
or physical handi-
caps.
Vietnam Era Employers with Affirmative action
Veteran Readjust- federal contracts programs for cer-
ment Assistance or subcontracts of tain disabled vets.
Act of 1974 $10,000 or more.
____________________________________________________________
. FORMAL COMPLIANCE REQUIREMENTS. There is very little
in the way of filling out forms and other paperwork re-
quired of small businesses in connection with the fed-
eral laws against job discrimination. However, if you
are subject to any of the above laws, there are govern-
ment 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 Employ-
ment 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 rea-
sons for hiring or not hiring, promoting or not promot-
ing, 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 state 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 discrimination
based on sexual preference.
California's fair employment laws apply to any employer
that regularly employs 5 or more persons, making it il-
legal for an employer to discriminate because of race,
color, religious creed, national origin, ancestry, phys-
ical handicap, medical condition, marital status, or
sex. 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 pregnan-
cy 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 ordinances that prohibit discrimination against
persons with AIDS, in employment situations and other-
wise. (Los Angeles Ordinance #160289 and San Francisco
Ordinance #49985)
@CODE:OF
@CODE: HI
. HAWAII REQUIREMENTS. Hawaii has its own state laws pro-
hibiting 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 ser-
vice, and cannot legally discharge or refuse to hire an
employee because the employee's income has been as-
signed 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 ap-
plication 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 fed-
eral 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 han-
dicapped persons.
@CODE:OF
@CODE: HI MA WS
. @STATE is one of the few states that has en-
acted a "gay rights" law, prohibiting discrimina-
tion in employment based on sexual orientation.