Employment Discrimination Laws

There are tens of thousands of cases of employment discrimination reported to the federal government every year. Many more are reported to various state agencies. Employment discrimination can occur at any point during employment, from hiring to termination. It is illegal for employers to discriminate based on race, religion, sex, disability, age, and many other categories.

Quick Guide: What is Employment Discrimination? | Types of Employment Discrimination | How does Employment Discrimination law work?

What is Employment Discrimination?

Employment discrimination can take many forms. Discrimination occurs if an employer uses a prohibited basis to make decisions about hiring, promotions, pay, or firing. Employment discrimination can also occur if harassment leads to a “hostile work environment.”

Harassment

Workplace harassment based on race, sex, or another prohibited basis is a form of employment discrimination. Harassment describes behavior such as offensive jokes, slurs, name-calling, threats, and other unwelcome behavior. Harassment can include verbal and physical behaviors.

Supervisors, co-workers, or even customers and other non-employees could act as harassers. Any employee affected by harassment could be a victim of employment discrimination. This means that offensive behavior directed at one person could create multiple victims of harassment. For example, if a supervisor makes sexist jokes directed at one woman, all women in the workplace are potential victims of harassment. All the women offended by these jokes may be eligible to sue their employer.

Employers can become liable for harassment in two ways. First, employers are liable if harassment is related to an adverse employment decision. This could include refusing to hire or promote a person based on a prohibited basis. Second, employers become liable for harassment if a court finds that they maintained a “hostile work environment.”

Hostile Work Environment

Not all incidents of harassing behavior, like offensive jokes or comments, are illegal. Courts and fair employment agencies will not hold employers liable for trivial or isolated incidents. To receive compensation, a victim of harassment must show that the harassment was pervasive. If the harassment is serious and on-going, this creates a hostile work environment. Courts and agencies decide whether a workplace was hostile on a case-by-case basis.

Retaliation

Retaliation describes behavior by employers that punishes applicants or employees for resisting discrimination. Federal law prohibits retaliation.

Some examples of retaliation include demotion, unwanted transfers, and unwanted schedule changes. Any action meant to discourage future complaints or resistance of discrimination is retaliation. Employers may still discipline employees who have filed complaints about discrimination. But these actions must relate to work performance, not to discouraging resisting discrimination.

Types of Employment Discrimination

Discrimination laws prohibit employers from using certain personal traits to make employment decisions. The categories of traits that come up most commonly in discrimination complaints are disability, race, and sex.

Bar chart showing discrimination complaints filed with the EEOC in 2019, broken down by type of discrimination

Disability

Disability discrimination involves treating an applicant or employee worse than others because of a qualified disability. Protected disabilities can be physical or mental.

Under federal law, the disability must substantially limit a major life activity and must be long-term (last longer than 6 months). A person may qualify for protection if they have a history of disability, such as with a serious disease that is in remission. About 33% of employment discrimination complaints received by the federal government involve disabilities. It is one of the most common forms of employment discrimination taking place in America.

Some jobs require certain physical or mental capabilities. Employers must offer reasonable accommodation to disabled applicants or employees. Accommodations are not required if they are too difficult or expensive.

Some state and local laws protect employees from discrimination based on any medical condition. Some prohibit disclination based on specific diseases, such as HIV/AIDS. Some prohibit discrimination based on height and weight.

Race

Race discrimination involves treating an applicant or employee worse than others because of their race. This extends to hair color, hair texture, skin color, or facial features associated with a person’s race. The law also protects association with people of a certain race, such as in an interracial marriage. Discrimination can occur even if the employer and employee are the same race or color.

Federal law prohibits discrimination based on race and color. About 33% of employment discrimination complaints received by the federal government involve race. It is one of the most common forms of employment discrimination taking place in America.

Sex

Sex discrimination involves treating an applicant or employee worse than others because of their sex. This extends to discrimination against women related to pregnancy or childbirth. In some cases, sex discrimination extends to protecting LGBTQ people. Discrimination can occur even if the employer and employee are the same gender.

Federal law prohibits discrimination based on sex. About 33% of employment discrimination complaints received by the federal government involve sex. It is one of the most common forms of employment discrimination taking place in America.

Age

Age discrimination involves treating an applicant or employee worse than others because of their age. Federal law prohibits discrimination against people who are age 40 or older. If two or more applicants or employees are over 40, it is illegal to favor a younger person solely based on age. It is not illegal to favor an older person based on age under federal law. Some state and local laws protect all workers, including younger workers, from age discrimination.

National Origin

National origin discrimination involves treating an applicant or employee worse than others because they are from a certain country or region. This extends to a person’s accent and ethnicity. It also includes the appearance of a certain ethnicity, even if inaccurate. The law protects against discrimination based on association with people of a certain national origin. Language requirements may not be used for discriminatory purposes. An English-only rule is only permitted if it is necessary for an efficient workplace. Federal law prohibits national origin discrimination.

Religion

Religious discrimination involves treating an applicant or employee worse than others because of their religious beliefs. This extends to members of organized religions as well as individuals with personal spiritual or moral beliefs. The law also protects against discrimination based on association with people of a certain religion, such as by marriage. Employers must offer reasonable accommodations to employees if dress-codes and scheduling requirements interfere with religious practices. Accommodations are not required if they are too difficult or expensive. Federal law prohibits religious discrimination.

Genetic Information

In 2008, the federal government prohibited employment discrimination based on genetic information. This extends to information about a person’s family medical history. Employers may not use this information to make employment decisions.

LGBTQ

Federal law does not explicitly prohibit employment discrimination based on sexual orientation or gender identity. However, in 2020 the Supreme Court found in Bostock v. Clayton County that this type of discrimination is sex discrimination. Discrimination based on sexual orientation or transgender status is prohibited under federal law. Some state and local laws explicitly prohibit employment discrimination based on sexual orientation and gender identity.

Other

The list above describes the categories protected by federal employment law. However, some state and local laws protect more categories than the ones discussed here. Some examples are:

- Military veteran status

- Family status

- Political affiliation

- Arrest or conviction for certain crimes

- Legal use of products such as tobacco

- Domestic violence victim status

- Housing status

Employers should be aware of applicable state and local employment laws. State and local laws often offer protection to employees that federal law does not.

How does Employment Discrimination law work?

Employment discrimination disputes usually begin with an administrative agency instead of a court. Under federal law, people who believe they are victims of discrimination must file a claim with the Equal Employment Opportunity Commission (EEOC) before they can sue. Many state governments require victims of discrimination to follow a similar process with a state agency.

What laws prohibit employment discrimination?

The most important law prohibiting employment discrimination is Title VII of the Civil Rights Act of 1964. This federal law prohibits employment discrimination based on “race, color, religion, sex, or national origin.” The federal government has also enacted the following significant anti-employment discrimination laws:

- The Pregnancy Discrimination Act

- The Equal Pay Act

- The Americans with Disabilities Act (ADA)

- The Age Discrimination in Employment Act (ADEA)

- The Genetic Information Nondiscrimination Act (GINA)

In addition to these federal laws, many state and local laws offer more protection to employees.

How do you report Employment Discrimination?

To report employment discrimination to the federal government, victims must “file a charge” with the EEOC. In most cases, charges must be filed within 180 days of the time when the alleged discrimination takes place. This can be extended to 300 days depending on the laws of the state where the discrimination takes place. In harassment cases, a charge must be filed within 180 or 300 days of the last incident of harassment.

To report employment discrimination to a state or local government, seek out the relevant local Fair Employment Practices Agency (FEPA). For example, in California, the Department of Fair Employment and Housing plays a similar role to the federal EEOC.

If a person reports a type of discrimination that is prohibited under both state and federal law to a FEPA, the charge will be automatically “dual-filed” with the EEOC.

How do you prove Employment Discrimination?

Once a victim files a charge with the EEOC or another agency, the agency will begin investigating the claim. To prove discrimination, a victim needs to show:

  1. The victim is a member of a protected group

  2. The discriminating employer knew the victim was in this group

  3. Harm occurred (the victim was fired, denied employment, demoted, harassed, etc.)

  4. Others who were similarly situated were treated better. (Or, in harassment cases, that the harassment was based on belonging to a protected group.)

Evidence could include the victim's statement, witness statements, human resource files, emails, or anything else that proves one of the above elements.

How much can victims recover by filing an Employment Discrimination complaint?

In 2019, only about 15% of the cases resolved by the EEOC were decided in favor of the complainant. The vast majority of these successful claims ended in a settlement. The average settlement amount is around $30,000.

Very few employment discrimination cases go to trial. If a case does go to trial, there is no guarantee that the plaintiff will recover anything. In cases where plaintiffs win at trial, monetary awards can vary widely. A typical award is around $200,000. However, this figure is very sensitive to the individual facts of each case and to the location where the lawsuit takes place.

How can employers prevent Employment Discrimination?

The most important step employers can take to prevent discrimination is to foster a workplace culture of respect. This means avoiding all jokes or pranks based on any of the protected bases discussed above. Harassment can occur due to the actions of any employee or customer. For this reason, it’s important to have a zero-tolerance policy towards offensive language and behavior in the workplace.

The following are examples of concrete steps employers can take to prevent discrimination:

- Institute a clear anti-discrimination policy that prohibits discriminatory and harassing behavior.

- Train all managers on how to prevent discrimination in hiring, compensation, and other personnel decisions.

- Train all employees on how to prevent harassment in the workplace.

- Maintain honest, accurate, and objective human resource files for all employees.

- Make personnel decisions based on objective qualifications like experience, performance, and education.

Are any businesses exempt from anti-discrimination laws?

Many federal anti-discrimination laws only apply to businesses with 15 or more employees. The ADEA, prohibiting age discrimination, applies only to businesses with 20 or more employees.

However, many state and local laws expand protection for employees to businesses with fewer employees. In fact, more than half of states have employment discrimination laws with minimums below 15 employees.

Finally, even small businesses should have an anti-discrimination policy. Implementing this policy early prepares a business for future growth. Further, a welcoming workplace leads to happier and more productive employees.