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How to Avoid Being Sued for Discrimination: What Every Employer Should Know 
 
by Robbi Erickson September 06, 2005

This article goes over discrimination, equal employment opportunity, and affirmative action policies and interpretations that impact employment practices. It gives practical advice on how to locate discriminatory employment practices in your company, how to avoid common discrimination errors, and how to create a work environment that conforms to local, state, and federal anti-discrimination laws.

Introduction

One of the most pressing issues in the business world today is the issue of discrimination. While federal laws and anti-discrimination programs have been implemented to discourage discrimination in any form, many business owners and managers still don’t know exactly what issues and practices they need to monitor in order to comply with anti-discrimination laws and affirmative action policies. Because of this lack of understanding of what exactly is considered discrimination, many businesses are putting themselves in jeopardy and leaving their business vulnerable to discrimination lawsuits and class actions that could negatively impact their public image and their abilities to do business. In order to protect your business from discrimination class action lawsuits you need to understand what discrimination is, who it applies to, and what employment behaviors you need to eliminate.

What is the Difference Between Discrimination, Equal Employment Opportunity, and Affirmative Action Policies?

Your first step to protecting yourself from being sued for discriminatory employment practices is to know what discrimination is and what the difference between discrimination, equal employment opportunity, and affirmative action policies are.

The main differences between discrimination, equal employment opportunity, and affirmative action policies are who the policies apply to and what administrative and legal consequences each carries for non-compliance.

Anti-discrimination Policies

Basic discrimination policies, or rather anti-discrimination policies, are based on federal anti-discrimination laws such as: the equal protection clause of the 14th Amendment of the U.S. Constitution, the Civil Rights Acts of 1964 and 1991, the Age Discrimination in Employment Act, the Vocational Rehabilitation Act, the Americans With Disabilities Act, the Pregnancy Discrimination Act, and the Vietnam-Era Veterans Readjustment Act. These laws provide federal penalties ranging from money paid for fines and retribution to victims of discrimination, to measures taken by the federal government against businesses that can severely impact their ability to function if they refuse to change their policies. Because of the stiffness of fines and punishments that can be imposed for non-compliance with anti-discrimination laws, most businesses have conformed to the requirements set out by these laws.

In general, to comply with anti-discrimination laws you and your managers need to treat all employees fairly and equally regardless of their sex, race, color, age, disability, marital status, etc.

Equal Employment Opportunity Policies

When a business claims to be an EEO company they basically are saying that they, either voluntarily or because of legal requirements, agree to maintain hiring and employment policies that uphold anti-discrimination laws and that their employees are also required to uphold such practices while at work. In addition to applying anti-discrimination laws to their companies, some EEO companies also implement anti-discrimination management plans that help to ensure that their employment practices remain anti-discriminatory in nature, and that they promote diversity within the workplace.

Affirmative Action Policies

Affirmative action policies are used, not as a tool of reverse discrimination, but as a recruitment tool for "qualified" applicants in an underutilized workforce pool. Affirmative action policies are only mandatory for companies that have federal contracts or that have an annual business revenue of $50,000 or more. If a company does not fall into one of these categories, its participation in affirmative action programs is voluntary.

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