@108 CHAP 5 旼컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴� � FAIR EMPLOYMENT LAWS AFFECTING SMALL BUSINESS � 읕컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴컴� As an employer, you need to be alert to your obligations under a number of federal and state laws that prohibit dis- crimination 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 em- ployee, including compensation, promotions, type of work assigned and working conditions. In addition to outlawing discrimination in employment, com- panies 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 general- ly 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 brief- ly 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. @IF099xx] NOTE REGARDING @NAME: @IF099xx] -------------------------------------------------------- @IF099xx] Since you have only @EMP employees, your firm is not re- @IF099xx] quired 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 particu- lar 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. Sexual harassment is prohibited as a discrimina- tory 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 em- @IF005xx] ployment rules because the number of workers employed by @IF005xx] @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 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.