A Small Business Owner's Blueprint to Building a Fortress of Fairness – Part I

As an HR consultant who's guided countless leaders through discrimination issues, I've seen how one misstep can devastate an organization and get in the way of your company mission. But I've also witnessed how the correct practices can transform a workplace into a fortress of fairness.

I commonly hear from small business owners that they don’t have time to deal with people issues and just need the job done. The reality is that as a small business owner, you're not just building a brand—you're creating a culture, whether you’re focusing on it or not.  It is crucial to address any type of workplace discrimination to safeguard a healthy and inclusive environment for all employees. In this two-part blog post, we will discuss the costs of discrimination to your business and solutions you can implement for a workplace of fairness.

The Hidden Costs of Discrimination

Before we talk about what the law requires and how to build fairness, we will discuss the hidden costs of discrimination that you may not think about. Doing all that you can to ensure your workplace is free from discrimination isn't just legally necessary; it's also financially necessary for a solid business.

The Equal Employment Opportunity Commission (EEOC) enforces employment discrimination cases in the U.S. and handled an increase of over 25% in email complaints and 10% increase in complaint calls in 2023. Before discussing solutions, understand what's at stake:

* The average employment discrimination settlement is about $40,000.

* Decreased job satisfaction and morale leading to a loss of productivity and engagement.

* Increased turnover resulting in more recruitment costs.

* Harmed business reputation making it harder to recruit, develop business relationships, and secure new work.

The Law

Several federal employment laws protect employees from discrimination and retaliation at the hands of employers. The regulations are enforceable depending on a minimum number of employees at the company which varies. It is best to develop non-risky habits even if your small business has not reached the threshold so that once your company reaches the minimum it isn’t a compliance nightmare. Although there are several discrimination laws, we will only discuss a few.

Employment Discrimination

Title VII of the Civil Rights Act of 1964 protects workers from employment discrimination and retaliation with respect to compensation, terms, conditions, or privileges of employment based on an individual’s race, color, religion, sex (includes sexual orientation and gender identity), and national origin. This law covers businesses who have at least 15 employees.

Examples:

• National Origin Discrimination: A small business provides a pay increase to employees who are U.S. citizens but does not to non-U.S. citizens.

• Race Discrimination: A small business chooses to only give employment applications to white individuals who visit their booth at a job fair and refuses to give employment applications to non-white individuals.

• Retaliation: A small business terminates an employee (for any reason) after they disclosed that they have a disability.

Disability & Pregnancy Discrimination

The Americans with Disabilities Act (ADA) protects workers from employment discrimination based on disability or pregnancy. Pregnancy is also protected against discrimination by the Pregnancy Discrimination Act of 1978 and the Pregnant Workers Fairness Act of 2022. These laws cover businesses who have at least 15 employees.

Examples:

• Disability: A small business refuses to offer an employee who has diabetes time away from work to administer their insulin shot.

• Pregnancy: Another example is a small business that denies a promotion to a pregnant employee due to her upcoming medical leave.

Age Discrimination

The Age Discrimination in Employment Act (ADEA) protects workers from employment discrimination based on age (40 or older). This law covers businesses who have at least 20 employees.

Example: A small business does not allow a 60-year-old employee who requests to attend training and sends a 30-year-old employee instead.

Genetic Information Discrimination

The Genetic Information Nondiscrimination Act of 2008 (GINA) protects the unlawful discrimination of employee genetic information including family medical history. This law covers businesses who have at least 15 employees.

Example: A small business does not allow an employee who has terminal cancer and is eligible for a promotion to be promoted.

State Discrimination Laws

As of this writing, 14 states have their own form of employment discrimination regulations and protected classes that may be different from Title VII of the Civil Rights Act of 1964. For example, in Michigan, it’s unlawful to discriminate against an employee due to their height or weight.

It’s important to understand what the laws are where you have employees working (not just where your headquarters are located) so that you can steer clear of possible lawsuits. You can see a running list of state regulations here.

Conclusion

Remember, building a discrimination-free workplace isn't a one-time effort—it's an ongoing commitment. By fostering an environment of equality and respect, you're not just avoiding legal pitfalls; you're creating a workplace where every employee can thrive and take great care of your customers. We will discuss some specific strategies in part two of this blog post series next week.

Need help implementing these strategies? CPR specializes in building discrimination-proof workplaces for small businesses. Contact us for a free initial consultation.

Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.